That’s completely made up. No one from Topaz has ever said that. They only ever said it was made to be sort of a mix of Proteus and Iris.
As far as this statement goes:
There must be a threshold of how bad the source has to be for it to look better. I tried a mid 2000s DVD, and even at 1X scale, it made the skin look more plastic and baked some of the noise into spots that are impossible to clean out later.