I agree that it looks too sharp for my taste, the original arcade monitor for this game ran @ 320x224 and didn't look this pixilated as it does when up-scaled to hi-res with a high pre-scale value as shown in your image but other than that it looks great.
Here is my screenshot for the same game and of course what might look good to me might look awful to others so I keep that in mind but I'm very happy with the output and looking forward to the next HLSL update with prefect scanline lineup, *I'm struggling to get it 100% perfect and currently there is no perfect universal "scanline_size" for all games, at least not when artworks and bezels are used.
preview:
[ATTACHED IMAGE - CLICK FOR FULL SIZE]
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