Huge blocky pixel art never really looked that way in the first place. The pixels in Atari/NES games were made to go through the various distortions in the video pipeline (composite crossover, scanlines, flickering, misaligned electron guns and all that) that left them with all the hard edges blurred off.
The aesthetic is totally based on people running emulators showing you the framebuffer in a way it was never meant to be seen.