OMG, I don't know what to say! Well I could try it on my NTSC C128 and report... but it does so many things I'm not sure if my report would be relevant... oh well, can't think of reason NOT to see what happens with REAL hardware
Just type those commands (that I was too lazy to translate into English again) for a couple of times, and watch the screen get filled with random stuff. It's more a proof of concept (that I worked how to type small letters on the graphical screen), no fitness for any sort of purpose. It's so slow you can actually see the characters being painted, haha.
It looks like you get color artifacting on your monitor, Witzo, which I didn't think digital monitors would do. That is (was) one of the things holding me back from converting from 1901 or 1702 to a more modern display. One of the few things I don't like about VICE is the lack of artifacting and that really in the sense it just doesn't display what my system does.
The color artifacts are from the analog mixing and noise in the C128 / VIC-IIe. A digital monitor can't remove them... well it might employ some filtering to improve the analog signal, but even then many artifacts will remain. Yeah, I don't like the VICE screen either. I never have done direct C128 -> VGA, but I have done indirect: C128 -> PC Capture -> VGA and the image was nice and "warm"... very similar to 1902 (unlike the "cold" VICE).
However at the time my VGA monitor was a CRT. With LCD/LED displays, you get both the original distortion (from VIC-II) plus distortion from the pixels of flat-panel display... the pixel distortion isn't bad with modern LCDs (like 1900x1080 display) because this is way more resolution than the VIC-II.
Going a bit more off-topic, with VDC, which I have directly connected to LCD, the pixilation from the monitor is slightly noticeable... but that is because VDC has much finer pixels than VIC-II.
In other words, pixilation from the monitor shouldn't worry you at all for VIC-II images (ask Witzo, it seems he could know better). And like I say (or you can see from Witzo's images) the color artifacts shine through.
Finally, I've never done HDMI conversion. I guess it might introduce blocking artifacts? I don't know... just tossing that out there.