More info:
- An image from the original digital camera on the prototype digital playback system, accodirg to NYTimes.
- Stephen Sasson of Eastman Kodak Invents the Digital Camera : History of Information
- Wikipedia: Steven Sasson - First self-contained digital camera
- Kodak’s First Digital Moment (Lens blog - NYTimes - WebArchive)
Plus, the TV used to display the photo may also be helping it look better since old TVs had thin black lines alternating between the display lines (scan lines).
This has the effect of smoothing out a lot of the more jarring edges of pixelation in old video games, for example.