Yes it is, your title is attributing something to them they weren't responsible for.

But the point still stands though. Given that the coin was struck in 694, and was so close to the Prophets time, our modern interpretation of drawing images may still be wrong.

No, not really. We dont say the 5 rightly guided caliphs, we say the 4.

Additionally, it also begs the question as to whether the coin was minted under the supervision of Yazid. i.e did he say "print a coin with my visage", or was it done under the authority of another official.

1. Even if he did, not everything he (yazid) did was correct. I'm going to leave it at that.

There's also the fact that drawings were done by other Islamic empires later on (most notably the Ottomans and Mughals)

Yes, because the Ottomans and the Mughals are perfect examples of islamic states that 100% applied the sunnah and didnt deviate according to the nafs of the ruling classes or culture. /S