With all due respect to other humans, my personal opinion is that anyone who thinks an SD game console looks good on an LCD probably has a different definition of "good" than I do. A lot of people who watch SD TV stretched to 16:9, or listen to music with pack-in Apple headphones, or drive a Dodge Caliber, or eat White Castle, or wear dollar store sweat pants...they'll say these things are "fine" or "good enough", but I think its really the inability to tell the difference that helps them stick up for this junk.
What sucks about the LCD thing is that I can't think of any marketing incentive that would ever drive the OEMs to fix this problem. With all movie content coming from set-top internet devices and all game consoles going HD (when the Wii dies, that'll be it) they start removing composite/s-video/component from all new TVs period. Then what we will play TG-16 on? Maybe the same TVs we are now since new electronics are unreliable junk...but some day all the 90s CRTs will be dead, and we'll have to be modding our Duo Rs for HDMI.
I guess, realistically, we only have to bother with keeping this stuff going in our lifetimes. When we're gone in 60 years nobody will give a shit about 16-bit gaming. In the meanwhile we need to learn how to fix old TVs as well as the systems that we run on them.
The alternative of course would be super high performance upscan converters built (competently) with gaming in mind. Something like the X-RGB series, only better.