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Just a quick guess as to why this, and other Poverty Row Films, were looked down upon....low budget. 

Now it may have been well received by society at large.  There are those films which are not considered art by industry insiders and critics which can outsell those film viewed as more sophisticated.  Example: years ago, someone told me Citizen Kane didn't so that well at the box office.  However, Bucks Privates did. 

Getting back to those who looked down on these films, in the industry, I'm sure actors, agents, and studio bosses with a lot of money didn't think much of smaller outfits.  It's no different than, say, a tier level system of standing for society.  People at the top view people towards the bottom of the industry with little or less respect.  And some audiences may have agreed with the obvious lower budget look to these films.

Good example:  Take New Line Cinema's remake of A Nightmare on Elm Street.  Now compare it to one of Charlie Band's Full Moon Films...let's say...Puppet Master Vs. Demonic Toys.  Which one has the better acting, better sets, and overall better quality?  

That doesn't mean the lower budget film is less entertaining or even makes less money.  It all depends on how audiences receive each film.  And both may be financial successes. 

As to colorization, as far as I'm aware, The Corpse Vanishes has not been.  I remember back in the VHS days, The Black Dragons and White Zombie had been.  However, I never saw either copy. 

Regarding The Corpse Vanishes, thoroughly enjoyed this film.  Bela is fun but that's no surprise as usually is the case.  I'm sure if you perform a search in the Poverty Row folder, you'll find there's a thread already on this title.