NTSC is called Never The Same Colour Twice - and you're wrong it is a very inferior format - just look at Justin Timberlake's videos which you can buy over here which have been converted across with their bog standard colour rendition.
I live in a PAL zone and have *never* seen overscan on a Megadrive - maybe in the US but not over here oh no matey. And that's the point I am correct as I live in the UK and not the US. However it may be the case where you are.
But that's bog standard!!!! The resolution you quoted is very poor.
Frame rate is part of the problem with NTSC say for example if you converted from a movie you would normally use 3:2 pulldown unless you progressively scan the image.
This leads to a juddery picture. With PAL they sometimes just speed the video up slightly. Having watched a progressive PAL video it is totally a holy experience.
Still when digital video broadcasting takes off in the US it will be pretty good as the specs I have read are very similar to those all around the globe, and suffer none of the artifacts.
Before you say I can't compare the US as I haven't seen a NTSC signal, I have seen one, where the monitor was capable of displaying it, you could also trick the Amiga into going into 60Hz mode. There is not advantage into going into 60Hz apart from the game playing faster on the Amiga it may appear smooth but then there is the issue of the smaller resolution. A Pal game can be perfectly playable just look at some of the Pal classics out there.
Also a friend has stayed in the US and came back saying that it is true - the NTSC pictures out there are truely awful.
Sorry mate, but NTSC is not a very good standard, just read the specifications.