Saturn Bomberman 10-player mode is the best reason to have a Saturn hooked up, and it would have this issue. Virtua Fighter 2 and Sonic 2 VS do as well, although in all fairness there's not many instances where I'd bust them out. But then even random obscure shit I'm looking to pick up for fighting game events like Elan Doree would apparently even have this problem.
It's common enough to be an important consideration if you don't have a convenient alternate setup and need one processor to be able to handle everything.
When you consider that lightgun games are already out the window too... I think it's fair to give up <0.5% of gaming's history for a nice setup... and if that bothers you, yeah, get an alternative setup to go with it. (and keep in mind, Chrono Cross will be fine to play on your PS3)
I'm seeking a PVM now, just so I have those kinds of options.
If you're using good cables and the game you're playing has a progressive scan option, just turning that on should be enough. IMO, it isn't worth spending money on extra equipment to handle 480p games.
If most of your library is 240p/480i and you also want something for older systems, then it's a different case.
Very few PS2 games are 480p.. You can really consider it a more or less 480i system.
So his TV's internal scaler probably does a sluggish job of de-interlacing the 480i image.
But yeah I'd still agree anyway: I'm not sure it's worth spending $400 for an upscaler just for 480i material anyway. It's not going to be night and day better. I'll bet you the main thing there is that PS2 games just don't look as good as we thought they looked back on SDTVs.
Getting a better cable might help though, as Irish says, if the issue is "muddiness" in the blacks.
Yes, an XRGB mini would clean it up, but you really buy that for the 240p consoles, and he said he didn't want to spend money anyway....