I think the appeal decision is questionable, yes, as Niantic has already stated in their criteria clarification that cemeteries can have wayspots for chapels, monuments or graves like the one you described. ( Cemeteries & Other Sensitive Locations )
Really, i don’t agree with the appeals decision, as the informational sign on it can be seen on the supporting photo and makes it very clear, that this place is open for public exploration.
In germany, cemeteries can be accessed publicly. There are rules for this, so you need to be respectful and calm at those places (normally those rules are stated at the cemetery entrance on a green sign), but walking on cemetry ground for other reasons than mourning is generally allowed.
I would resubmit the nomination with the informational sign as the main picture (reviewers LOVE informational signs) and, if you want the pretty statue as main photo, add that picture once the wayspot is accepted and give that picture a positive rating in you game app once approved.