Mickey, asking about art <> photography is a very good question imo.
I'll try to slightly rephrase your question:
Why would I think that a photograph which did not turn out right would be nice on canvas ?
I can't do else but give two funny answers first (attention! not serious!)
1.) Because I don't paint
2.) If I paint, it'll look like that
Onto the more diversified answer:
Since the invention of photography painters have related to it and created new styles of painting. That means nothing else than painting and photography have inspired each other all the time.
For instance, there is a considerable amount of paintings that look like 'bad' photographs.
Gerhard Richter: Woman With Dog 1967 93cmx73cm Oil on canvas
Source:
Gerhard Richter Homepage
I think at this point I could give answer number
3.)
Because I saw a similar thing hanging in an art gallery
The only real criterion for a personal relatedness to an image is of course whether you feel that it has any kind of appeal to you or not. In that regard it don't matter if it's a photograph or a painting.
Best, Georg (not a painter but likes to have a look at modern art)