It's partly because the media (especially TV news) deliberately blurs and desaturates pictures to indicate what decade they are from. Which doesn't necessarily have anything to do with the film technology of the time. But it is easy to forget that they are doing this and assume that the original photos are really like this. Why would 70s and 80s photos be desaturated more than 60s photos for example.
Even for digital media (e.g. youtube) tools like this are popular: http://www.youtube.com/watch?v=ChY8IIc_fv4