That's exactly what it looks like and the kids have watched many hours at that compression rate. I have, too. It's tolerable to us. Not great, just tolerable. Yes I think I also set it to 15fps; I forget all of the settings I used, but I think I could recover them.
When I was a kid we were lower-class and didn't have much money. One Christmas though I did get my very own TV: A 13" black and white, connected to cable TV. So small I had to sit less than 5 feet away to really be able to follow the details. In the family room was a 24" color set. Nice and rich. Could watch it across the room. So going to a very small screen, and losing color, you'd think I'd really be bothered. Truth be told, after I got absorbed into the story, I forgot it was B&W and tiny.
The same thing happened with our low resolution DVD copies.
