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This should probably go in the technical questions sub forum, but…
CRT in general is a better display technology than LCD. Especilaly cheap LCD. CRT has much better contrast with far deeper, richer blacks. That can actually make even a standard def crt look better than a cheap hd lcd if the screens aren’t too big. But if you’ve got an HD crt, yeah, that will almost certainly look better than a crappy low-end lcd (and it probably looks better than a lot of higher end LCD too).
Bottom line, the quality (and calibration) of your display absolutely has a dramatic effect on your viewing experience. And the larger the screen is, it becomes even more important to get a quality display because all the problems become more obvious.
Oh, but I seriously doubt many people would ever thing Vhs looks better than blu ray, even in your example. The resolution is just too drastic.