No, it was "distorted" 2D, like cardboards put in perspective. Not 3D.
I am not confused, the opposite. I grew up with that.
With only two axis, it is literally a 2D space, which gives some illusion of 3D as an implementation detail --- not the other way around.
EDIT also, using the term "literally" to talk about 3Dness when it is all rendered onto a 2D screen, is fairly precarious. No matter how many degrees of freedom, or how rendered, it will never be "literally" 3D, in the literal sense of the term.