Old CRTs helped blur the image. For that matter, C64 games on TV screens (which is how most people watched them, even though there existed dedicated Commodore monitors) blurred the image so much, the games barely resembled what you can see now with an emulator and a modern screen. Graphics were designed with this in mind.

> It is a remarkable feat what they achieved despite the limits of EGA, but it can't really compare to VGA.

In many cases, especially in the early days, artists didn't know what to do with so many colors, and produced inferior versions. Loom is a good example. The conclusion is that it's less about hardware capabilities and more about artistry, and technical limitations often force artists to be ingenious.