You haven’t seen a Teranex (Proper spelling found) transfer. Projected at a festival digibeat or any SD format you *WILL* pixelization. And most festivals don’t accept anamorphic digibetas.
Teranex’s use Adaptive scalers, and do it in real time, and (I’m sure there’s cheaper software solutions out there, like Algolith I hear). But if you’re projecting, at a festival, it’s a necessity. Even an Upres from the Kona card is preferable to projecting SD.