So this is cool from one perspective, and yet not necessary from another.
I did the same kind of 'fix' using just a variable pot resistor on the luma
line in my S-Video adapter unit.
http://sharewareplus.blogspot.ca/2015/06/lumafix64-has-arrived-lumafix-was-made.html
Also, I found that depending on the tv and cable being used, that pot needed to
be readjusted sometimes, so having to open the C64 case would prove to be very
annoying.
http://www.robadlers.com/category/making/commodore-64-s-video-adapter/
Possible their signal is that much cleaner than mine, but my adapter does
pretty good!
Rob