This is an amazing reminder that what we call "pixel artists" were often painting for messy analogue television canvases. In this case, it's absolutely clear that this game is meant to be played with a composite signal. Look at what it does to the checkerboard dithering!
https://twitter.com/CRTpixels/status/1387184488275402753
Poking around on Smart Blur with Photoshop has some pretty compelling results 
This is nowhere near perfect but I like the de-dithering you can get with a couple Photoshop filters, especially on a game like this. I find the sharpness loss acceptable here.
fwiw applying the exact same filters on some sonic screenshots looked completely awful
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