Well, I figured out a workaround for the time being. It really seems you should easily be able to disable stretching. Keep aspect and HWStretch don't seem to do the trick.
So, for 256x224 games rendered at 256x240, I've changed the Vertical Stretch slider to 0.934 since 224 is 93% of 240.
When I hit this sweet spot, screen detail just locks on into a crisp focus and everything even gets 10-20% brighter since it's no longer being scaled. Hello, native resolution!
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