Hindsight Isn't Upscaled

I was recently invited to play vanilla VF5 online. It had been awhile since I last played vanilla, so I figured; sure, why not?

Upon playing the game for the first time in at least a year, I immediately noticed something as soon as the first match started: this game looks like shit. Like, not even just a little bad, it looks fucking awful. In fact, if I had to guess, I'd say that this game isn't being upscaled at all.

How? How did Sega release such an awful looking port? How did nobody notice it sooner? I at least had the excuse of playing on various dying CRT monitors from the early 00's before now. This game was released in late 2007 for the 360, and as I recall, there were plenty of 1080p displays on the market back then. Even on a 720p display, I highly doubt it would look any better since the 360's internal resolution is lower than that.

Just to be sure, I checked the back of the case, and it does say it supports 1080p. If this was Sega's idea of support back then, I shudder to think of what other games of the time offered the same kind of "support".

Unfortunately, I don't have any capture equipment and my camera kinda sucks, so bear with me here. These pictures aren't the best, but if you look closely you can see where vanilla looks awful and where FS fixes it (Jacky's feet are a good example). It's much more prominent in person, obviously, so if you have both games, I implore you to see for yourself. This is almost as big of a difference as the PC port of Dark Souls, pre and post patch.