Yep this is what happens...looks amazing on the TV feed, and then you put on the headset, and you are like 'that's not what I was seeing on the TV'...looks much worse. But the good part is, once you get adjusted to the pixelated screen view, the immersion is great and helps alleviate the bad image quality on the headset. Is this because the PSVR screen quality is bad or just that the screen is right in your eyes?
I am sure PSVR2 will be much much better than this. VR is the real deal compared to 3D which sucked.