It did not strike me as being fake, although I do see some of the features that lead you to suspect that. If it's fake, I'm not really sure why someone would go to all that trouble.
In this case I think the issue could be resolved conclusively by an in-person inspection. But the message I take from this thread is that photo-shopping tools have become good enough that genealogists are routinely going to be questioning the legitimacy of old photos. It's not at all clear to me how we will go about resolving questions of legitimacy, or what someone could offer as proof that a photo has not been significantly altered. I am trying to get myself into the habit of attaching a note to any photo I edit, (say by cropping, sharpening, color correcting, or whatever) describing exactly what I did, in the hope that will lend some credibility to a claim of legitimacy.