Would it maybe be related to how pixel art looked on CRTs? We're used to pixel art now I think in part because of an era of future game devs playing roms on better screens, but the devs of the time (I think) wouldn't have considered a CRT filter to maintain the image on a shiny new flatscreen
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People forget that the sharp pixels themselves were drawn on CRT monitors because that's literally all that existed.
It's the same reason why GBA games look blown out, because it was to account for lack of backlight.
The universal standard was the outputs that the consoles supported, which low quality signal + CRT blending created a smoothing effect.
And I loved my Saturn. Still the most underrated of the CD-era consoles.
A lot of modern modded N64 bypass that final phase to look clearer.