Yes - VHS had limited luma bandwidth that was about 50% of broadcast TV, and extremely limited chroma bandwidth (the equivalent of about 40 pixels per line). There's a reason laserdisc existed.
Spot on...as I recall, you really couldn't tell the difference between VHS and Betamax unless you had a studio-grade CRT. Well...that's probably unfair...you could tell an difference, but not an enormous difference. It wasn't like going from 480i->1080p; not even to 720i. On our old analog TV there wasn't remotely enough 'wow' to justify the price difference and other limits, so dad took back the BM player and got a VHS.
Yes, but you're forgetting editing wasn't digital/digitized. You would copy from one tape to another, so a degradation issue. It's not the TV's capabilities, but if you started with higher quality you would get less overall degradation. I took film classes in TSOA at NYT back in 1982, and one class was film production and the other was lugging around a huge deck and camera in Betamax and then going back to a tape-to-tape transfer editing deck.
Well, sure. My point is, as a consumer product, betamax did not deliver on its promise to the consumer that bought it. It's really not important at which stage of content production and distribution the promises got lost (and I think you might be underappreciating 'most people's TV set was pretty meh', especially after the components had some life on them). It was sold to my amateur audiophile dad (yes, we had a reel-to-reel) as 'world changing video', and it wasn't, certainly not at the price point. I think the obvious superiority at the content production phase is testified to by the crazy longevity of BM in that niche, but since we couldn't really see that in our house, we (and almost everyone) bought the VHS.