If the makeup were really an issur from every standpoint, with no mitigating factors to mattir it, it would not be muttar.
That is correct. R’ Blumenkrantz obviously felt that there was a legitimate tzad heter, but it doesn’t mean that everyone should use it, and I heard directly from a family member that he only got involved in the production of this make up because there were people who would otherwise put on make up with no tzad heter.
Halachah is not always black and white, and any yarei shamayim should have standards somewhat above the absolute minimum, each one l’fi madreigaso.