Wow that's a great indication of the composite cable reducing quality, I've never really seen an example of that before
Yes, but...
Double Fine has this Let's Play series with video game developers called -IIRC- Devs Play. One of the first videos is a playthrough of Aladdin and The Lion King on the Sega Genesis. One of the comments that the guy who worked on both titles makes is that you have to keep in mind the target display device [0] when evaluating the art and VFX choices for a given game. The art for both games -but Aladdin in particular- is really gorgeous, but loses a fair bit of its beauty when viewed as hard-edged pixel art on an LCD screen.
The hard-edged pixel art that we see on modern sets is likely not at all what the art and effects teams who worked on these games intended. Their design decisions took into account the blurring effect of the target display device.
[0] Namely, NTSC/PAL CRT TV sets.
I expect you have to keep pretty far away from that stuff, the same as ReactOS/WINE had to stay away from MS source code years ago.
Yet it increases quality because these games were back then developed to work best with old CRT TVs that could only show interlaced video.