We'd run 2-4 consoles in separate areas, with each console being a team.
As a kid split screen adversarial was common, and the screen looking was never really an issue. If someone was better, you'd play 1v2, 1v3, or 2v2 with the best and worst player on the same team.
If you were at a LAN party and were too good, then it was you and the worst kid on one console vs 4-6 kids on the other 2 consoles. Haha good times.
The death of split screen keeps me in retro games.