Here is an example of texture filtering. This is basically what the OP is talking about.


Linear

Nearest-neighbor


I think being able to apply optional texture filters would still be fitting for Valheim.

Right now the game looks like its basically using a "Nearest-neighbor" which is the most basic and crudest filtering method. It's obviously done on purpose though, I get that.

Still, I think it would still fit the game to allow for a simple texture filter. Even Quake 1, which is one of the first fully 3D games had different texture filtering methods you could tweak.

Some people like the chunky look for their retro games while others like the filtered look. Yet, both options have been around since basically the dawn of 3D gaming. They're both "retro".