I think the key is to achieve 'smooth' playback, so the brain doesn't pick up annoying 'artifacts'-without those, it will just 'perceive' detail and clarity. After all you only have sharp focus in a very narrow area of the retina, and only if you stop a frame can you see where the compromises are. Smooth playback is easier to achieve when the bandwidth is narrower and there are fewer pixels to manipulate.
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