Your screenshots looks extremely bad, not even my LCD upscale picture so badly.
Anyway on high resolution display something like 480i/p look bad no matter what you do. It's however possible to emulate 6'th gen consoles, because the image quality is noticeably improved on an emulator at something like 4x the resolution.
I however still prefer gaming on real hardware. On my low resolution plasma games from 6'th gen consoles looks amazing, way better even compared to my SD CRT (because the CRT makes the image blurry to an extreme degree.).
SD CRT
Plasma
SD CRT
Plasma
I have played burnout 2 lately (PS2 is the best version, even xbox version doesnt look so good) and this game still impress me. On my plasma the textures look much better compared to my SD CRT, and picture has almost HD look to it. I have taken these photos from close distance, but from something like 2.5m from my plasma (my normal viewing distance) not even aliasing is a problem.
6'th gen games can look good on LCD as well, but it has to be low resolution and small LCD. If you have something like 26 inch 720p LCD even PS2 games looks very good.