I am glad you mentioned this. While watching the episode the other night I wondered if the output improved.
I can't comment on all Genesis models. I only have one 32X setup, and it's a Genesis 1, Sega CD 1, 32X tower of power combo, but the video coming out of it is quite a bit better from the 32X than the Genesis 1. I've not tried the 32X on the Genesis 2, X'eye, or CDX though I know it's possible with those. I also have Genesis 3 and the LaserActive Genesis module but there's no easy way to hook it up with stock hardware there.