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I watched TV and used computers in the 90s and the whole time I was desperate for display technology to improve. Mainly CRT refresh rates, which often gave me a headache, but yeah I noticed the crappy pixel density all the time too. The nice Apple display I have now is one of my fave things I’ve ever bought and could only be improved by being >60Hz (which I do notice, but it’s not a big deal).
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Watching older TV shows I notice a lot more close ups of actors faces. I’m convinced it’s because the shows were produced with small screens in mind.
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Depends on the content. When people are talking in a nondescript (thing the "12 Angry Men" movie), SD is quite fine. Now compare it to Blade Runner or Scarface. Those movies absolutely benefit from more detail and colors.
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Yes, I definitely remember noticing how much better TV was when we moved from 20" sets from last century to HD LCDs (and then much larger/higher-res LCDs) over the last 25 years.

And I would disagree that only the story matters. If that were the case, people wouldn't go to the theater (a trend that has started happening in the last 15 years as people have been able to rig their living rooms to give an experience that is nearly theater quality, especially when considering cost and convenience. When we had 20" TVs, they were no substitute for going to the movies.

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People had giant TV’s in the past as well. They are cheaper now.

Either way, a larger screen is not the same improvement as higher resolution. And more importantly, the reason people may not go to the movies when they have a home theater system is partly due to justifying the cost of the theater system.

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