5.0.8a Update
This is a small update. I was able to retro-fit the video options menu to manage filtered/unfiltered textures.
In the process I removed an old shader I called "smooth pixels" and made this manage the texture filtering shader. Texture filtering will be off by default, so you should see each pixel clearly, as in this image:
If you set texture filtering to "on" - still called "smooth pixels" in the menu - you will see the textures no longer have clearly identifiable pixels.
Note, there are other options like old-school pixels (off by default), which effectively lowers the screen resolution, and posterize (on by default), which decreases the depth of the colors. These can be adjusted to suit the player's preferences.
In the process I removed an old shader I called "smooth pixels" and made this manage the texture filtering shader. Texture filtering will be off by default, so you should see each pixel clearly, as in this image:
If you set texture filtering to "on" - still called "smooth pixels" in the menu - you will see the textures no longer have clearly identifiable pixels.
Note, there are other options like old-school pixels (off by default), which effectively lowers the screen resolution, and posterize (on by default), which decreases the depth of the colors. These can be adjusted to suit the player's preferences.