Of course, there's something to be said about correcting things like color and aspect ratio to look better on a contemporary CRT TV. My argument is that sometimes the changes they made didn't end up looking any better, and in some cases looked worse. Also, inferior image conversion software (at least inferior by today's standards), time restraints, skill (or lack thereof) of the individual pixel artist and just plain laziness played their respective roles as well.
I already broke down the sub palettes for the bg tiles in SGX Daimakaimura when I created that custom image. It's not simply the arcade screenshot converted to 9-bit color. I put quite a bit of work into seeing how nice I could get it to look without increasing the number of unique sub palettes, which is why a quick little hack might not be out of the question. Granted, the original pixel artist probably didn't have the leisure of infinite time to work on his conversion, but it's nice to see how nice the SGX version actually and realistically *could* have looked, given just a little more effort.