@jhv

Because that degradation is part of the semiotics of how we encounter and remember media. This is the whole point of things like the analog horror genre.

That said, the idea that degradation is unidirectional can be deceptive. Video essayist Noodle recently discussed how pixel art video games rendered for modern displays actually look worse, because the very ways CRT displays degraded the image were part of how those artists achieved unique effects. Another video essay on the same channel explores the history of green coloring in various releases of The Matrix, which casts into question the very notion that there was ever a non-degraded version of that film.

Transformation is part of how art works.

Relatedly, a reactor myself follow recently commented on how often TV shows in the 90s used shadow, casting actors in partial darkness, to powerful effect, a technique of film lighting that has been largely abandoned in later decades. Their having pointed thus out, am noticing same in other shows from the 90s.

Aesthetics are choices. You, personally, may not like a particular choice, but that doesn't mean another choice would have been better. Only different.