Do you feel like the picture is terribly degraded?
Not
terribly degraded, but just look at the awful stepping on that dish thing on the right.
(retaining the original detail, clarity, etc. extremely well),
If you're going to upscale by 133% with a simple resizer,
none of the original lines are going to make it through unscathed - they'll all be a weighted blend of 4 or more neighbours. If you ask me, that's a bad thing. Even if you did it judiciously with a tweaked algorithm, only 1 in every 4 lines will be an original. Not only can you not increase information by upsizing, you can't even keep what information there is - you have to "smear" it around.
Of course, if have an LCD or Plasma, your picture's going to get scaled regardless, and you may as well try and do it first with a better resizer than your TV has. If like me you have a CRT, you might find that the stepping is less offensive than having visible scanlines. Personal call, that.
I think the real point is a lot less people would be interest in the X0 project if they decided to keep the picture 4x3 letterboxed.