The Sega Master System version of Shinobi (Sega) looked much better than the NES version (Tengen) is still shots, but the NES version scrolled more smoothly and felt more robust.
Shinobi for the NES was actually pretty decent, but the boss battle graphics were watered down.
Yes. Look at NES games like TMNT II: The Arcade Game, Track & Field II, Double Dragon II, and Batman: Return of the Joker. Games like that feature large sprites and great, detailed graphics overall.