Depends on the textures used. High contrast textures with vertical lines (e.g. dark wood on bright wall) would make the distortion very visible even at 320x200. However most of the game's textures are not like that.

There are some user made maps however where this can be seen (e.g. i remember playing a map which was supposed to be inside a fantasy town and it used a bunch of wood-on-wall textures that made the distortion apparent).