Adding as an answer because its too long for a comment.
The artefacts you are referring to are, I think, caused by JPEG quantisation. The original image has been decompressed, downsampled to a lower resolution, and then recompressed. Since you haven't selected any other compression method, the default for the /screen PDFSETTINGS is used, which is JPEG for Gray and colour images and CCITT Fax for mono images.
You could easily avoid that by using a different compression filter, though of course that would not produce as much compression of the output.
There are several suggestions I can make; firstly don't use PDFSETTINGS unless you are completely sure you want all the things it is doing. In general I would expect better results by leaving most settings alone and simply applying the switches you need.
Given that these are scanned pages, there is no point in setting any of the Font related parameters (unless invisible fonts have been added).
You've set ProcessColorModel twice, once as a name and once as a string. In fact, if you use ColorConversionStrategy, you shouldn't set it at all, and if you aren't using ColorConversionStrategy then it won't have any effect, so you can just drop these two entirely.
There is no ColorConversionStratefy of /Mono, and trying to set that causes errors for me. There appears to have been a bug introduced with the ColorConversionStrategy in the current release. If you set Gray you will actually get RGB. In order to get Gray you actually need to request CMYK. Obviously that's been fixed but in the meantime all the spaces are 'off by one'. sRGB->CMYK, CMYK->Gray and Gray->RGB. LeaveColorUnchanged is unaffected.
Of course this means that your setting of the Gray and Mono Image parameters is having no effect (at least not on the colour images anyway). This is why you get a low output size, and also why the result is heavily downsampled and quantised.
Now, as I've already said, you can't get Ghostscript's pdfwrite to produce monochrome output, only grayscale. Reducing the image data by a factor between 8 and 24 is where most of the gains are coming form I believe. So frankly there's no way you are going to get down to the same output size using pdfwrite without heavily downsampling the images. And if you do that, then the quality is going to suffer.
This command line:
\ghostpdl\debugbin\gswin32c -dBATCH -dNOPAUSE -sDEVICE=pdfwrite -sOutputFile=out.pdf -sColorConversionStrategy=CMYK -dPDFSETTINGS=/screen -dGrayImageDownsampleType=/Bicubic -dGrayImageFilter=/FlateEncode -dAutoFilterGrayImages=false unit1.pdf
produces a gray output file 2.1 MB in size, but the extreme downsampling has resulted in very blurry output, I don't think you will like it at all. You could change the amount of downsampling, but that of course will result in a larger output file. You could leave the compression filter unchanged (DCTEncode == JPEG), but that will get you compression artefacts.
Basically, as I said right at the beginning, if you want to manipulate image data, the best way to do it is with a tool designed to manipulate images, not one designed to render PostScript/PDF files.
You could, with some effort render the original pages to a btimap format with Ghostscript, using a stochastic screening method as IM appears to have used, then read the images back into Ghostscript to produce a PDF file, but that hardly seems like its easier than using IM as you are now.