My setup can handle that based on resolution; but as established at considerable length on my Vero 4K+ it isn’t currently possible to output SD video at native resolution from Kodi Krypton; using Leia you can get uncorrupted native-resolution SD video if the aspect ratio is 16:9, but you can’t if it’s 4:3.
If it were actually possible to get native-resolution SD video out of OSMC (or native-Res SD 4:3 video, anyway) then this would be much less of an issue.
I’m sure Kodi isn’t handling it automatically because I have eyes - I can spot the over-saturated colours. Also because my Lumagen RadiancePro video processor is separately calibrated for rec.709 and rec.601/SMPTE-C and I can manually switch between the two if necessary. But a) I’d prefer not to have to switch manually, and b) most people who play NTSC DVD rips using OSMC don’t have that option, so they need a look-up table even if I don’t.
In the past the Kodi devs have been unwilling to acknowledge the problem - see, for example, this thread on the Kodi boards.