I'm just replaying this for the first time in maybe four years. I wanted to replay it prior to playing Red Dead Redemption (and for some reason it's taken me 6 months or whatever to get around to it, lol--actually the zombie Redemption offshoot prodded me to finally get to work on it, as I'm anxious to play that, but I want to do them all in order).
The first time I played it on an old "phat" PS2 and a older-style, non-HD TV. I'm replaying it now on a year-old slim PS2 (my old PS2 died, which is why I got a PS3, and then some PS2 games weren't working well on it, so I got a new PS2 finally last January) on an HDTV via a component cable.
I know this game was made to look like you're watching an old western film. There are intentional lines made to look like film scratches, etc.
However, I sure as heck do not remember the game being this blurry before, and when I look at PS2 screenshots from the game online, they're not nearly as blurry as the image I've got on my TV. The image I have makes the game look like you're watching a 3D film without 3D glasses on. It's hard to play it, as it's hard to see the enemies well.