Yeah I use to think the same way you did too. The truth is s-video doesn’t blend like a ntsc signal, in fact it’s more closer to a rgb like signal, think rgb but not as sharp. Svideo dosen’t do things like blend the sonic waterfall etc, in fact you get the “jail bar” look on a accurate svideo signal.
As a added bonus though I did add in the sgenpt-mix multpass shader to my svideo presets to blend checkerboard dithering for games like Silent Hill and Saturn games.