Yes but that doesn't make interlaced images trash IQ, it just means most modern devices can't handle the most common video mode of all time very well. 480i was literally the perfect resolution for a 2001 console and the absolute best IQ 99.99% of screens around at that time could display.
Yes, however, CRTs are probably the best for it, because on anything else interlacing becomes a issue because it's just 240 lines switching between even and odd lines every second making it not as good as progressive. I am thankful interlacing res aren't the norm anymore, I mean back then when viewed on a CRT it isn't bad, but not ideal nowadays, and TBH it's never ideal in the long run.
The reason deinterlacers exist is because of that res, if it weren't for that they might not exist(at least for that option) because there would be nothing to detinterlace without interlacing. In fact I wish 480p was more common on the PS2. The Dreamcast and Xbox had 480p as a standard for a lot of games(I would know as I capture a lot of games on those systems plus most are 480p anyways), and there were more 480p Gamecube games than PS2 so I wonder about that. Sure, not everyone had a 480p TV back then for obvious reasons, but 480p should had been a choice for most games.
I can capture 240p flawlessly, and any other resolutions that are progressive scan too. For 480i I need an upscaler/deinterlacer to get a good picture and 60FPS for my capture cards. That's why I don't like to capture PS2 games, because it's always an extra step before the capturing. I normally go for an Xbox or Gamecube version of a game unless they're 480i on that system or 480p on PS2.
480i on 240p games are just...ugh. Dem lines, they can look nasty in motion, definitely when captured.
So overall, still good for CRTs but nowadays I try to avoid it whenever I can, or just have to deinterlace if I don't have any other choice.
. Sadly only half joking on that one 
. Still absolutely collection worthy though.
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