At the risk of being the wet blanket I so often am, BUT...
The video on a Laserdisc is (dum dum DUM...) not actually digital! It is in fact a high quality analogue video, equivalent to a professional standard 1" VTR recording encoded as (OMG) a Composite video signal! Early on even the audio was analogue, but CD level 44.1k digital audio was added fairly early on in its consumer life. It was, of course, much better than its competitor formats (like vinyl vs cassette tape) - much superior quality video on a medium that doesn't deteriorate through use and which has much better search, SloMo and freeze frame features.
The digitalness is probably added by your TV - various image processing things plus there'll likely be an NTSC to PAL conversion somewhere along the line (probably some weird digital processing as well). To get the best experience you might need to get a good analogue tube TV that can do NTSC (it's PAL conversion [unless you can get a native NTSC unit] is probably a softer analogue process).
The future WAS now:
Yea, so I actually did find this out when I looked it up after I posted the other day. I was confused because many players do have S-video out. But apparently it won't actually make the picture better because it just takes a composite signal and splits to to work with the s-video cable.
The good news is there's no reason to buy another player just for s-video or scart.
So I was totally wrong in calling it "digital looking", but I think what made me make the connection was FMV from games. Seeing a picture that is clearly differen't to VHS, but still has scanlines is really weird and the only place I've seen it before is in FMV games. It really does fuck with your brain.. haha
I wonder if there is something happening in a ntsc to pal conversion. I'm not playing this on a modern TV, but it is a fairly big TV. Its being played on a rear projection TV.
The scanlines really stand out and I'm not sure if this is because I'm used to them not being there or if its due to the large screen size and relatively low resolution.
I also didn't realise how long this format has been around. I thought it was new in the 90s, but no.