This is such a fundamental flaw in social perception, and just general thinking, I can almost imagine exactly what you're like to be around. No, they didn't believe it was better, they almost certainly walked out because of your overbearingly putrid smugness.
The test reel ran again and I pointed out the problems. "This person's face is too dark. The background is all blown out. There is a blue color cast. Etc." The technician looked for about a half minute but couldn't see the problem. The rest of the people just turned around and walked out. It was clear that nobody WANTED to see the deficiencies in the image and they were willing to ignore them because they wanted to believe that "digital is better just because it's digital."