Very true but some sets just do a better job so you might not see as much of the pixelization even if it is there in the original signal. I have several dvd players and some just seem to do a bad job of displaying or scaling the video and the jaggies and things are very easy to see, others I almost never see it with the same disk.
I used to love my laser disks because they never had the problems, the bad disks just tended to look softer or have spots where the dropouts were, even if they are lower res. it just didn't bother me as much because the video tends to stay smooth with out blocking and things.