> It makes me wonder, why is it that our eye in real life sees straight lines as straight, the way this demo renders the image?
Your eye doesn't see it as straight, your brain does. Your eye doesn't actually gather a single coherent image, in fact. It's constantly moving[1], bringing the higher-precision fovea at the center of your retina to bear on interesting parts of the scene.
Your brain then accumulates all of that data into a single coherent "image" which is what you consciously perceive. This is why, for example, you are unaware of the blind spot caused by your optic nerve obstructing your retina[2].
A straight line in the world isn't projected onto a straight line on your eye: after all, the back of your eye is curved. (Even if it was, so what, it's not like your rods and cones are aligned in a nice neat grid.) It's just that you've learned that a line of stimulus curved just so across your visual field corresponds to a straight line in 3D space.
[1]: http://en.wikipedia.org/wiki/Saccade
[2]: http://en.wikipedia.org/wiki/Blind_spot_(vision)