Yours looks better, to me the effect looks superimposed and unnatural in nirv's attached MK2 screenshot above. What can I say, in the end it's subjective. Another poster here would like horizontal scanlines on vertically oriented games!
I'm using one of the settings JohnIV posted (I think? lol, I have tried them all) + prescale 3 and it looks more like yours than nirvs. You may be right about the HLSL stuff already doing scaling but I definitely am seeing a blurrier, slightly out of focus looking image with prescale set to 1.
One thing that amazes me is seeing the letters of color-cycling logo on the Rainbow Islands title screen "jump" like they would on a real monitor. Without HLSL they just, well, cycle.
One problem I have found is that some settings that look great on higher res games (Rampage World Tour) don't look as good on old, lower res games (Pac Man, Moon Patrol) and vice versa.