Yes, that's all true. BUT IT'S NOT WHY THE IMAGES ARE SMALL!!!!!! The images are small because the website scaled them to fit. There's no other reason to shrink them, the layout of your website, except maybe to conserve bandwidth with smaller images rather than rely on heavy JPEG'ing. It's certainly not true that the website shrunk them in order to make the game look better, as you've said!
Do you understand the distinction I'm making? I'm not arguing about the effects of shrinking images, but the reasons behind them. It's like saying joy-rider maniacs who drive recklessly and do 120 MPH down the motorway do it to kill people. That may be the unfortunate consequence of the actions, but it's not the reason for their actions. They don't think to themselves 'I'll nick myself a tasty motor and drive around until I crash a kill a few folk and maybe myself.' They think 'I want a funky adrenalin rush and stealing a car and racing it around will give me that.' The people that shrunk the image weren't thinking 'I'll shrink this image to make the game look better' but thought to themselves 'I need to shrink this image to fit it in our website column.'