Because a PC display has more resolution than a TV.
But even a TV has more than 282 pixels of horizontal resolution, so this doesn't apply here. You can make this point for high-resolution (512x240) modes of the Super NES.
(I've once taken the time to count the number of RGB phosphors per line on my old trinitron TV, and it happened to be exactly 480 pixels horizontally.

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Doesn't composite impose a pseudo-limit due to the chroma carrier's frequency
Why would it? If we can produce high-resolution pictures with our algorithm without pseudo-limiting at the subcarrier frequency, why couldn't a TV set do the same? Most TV sets are actually WAY more sophisticated than our little algorithm here. You don't even need a comb filter for that, just a notch filter at 3.58 MHz would be sufficient.
Again, if there WAS a limit at 4.2 MHz, or as you suggest, at 3.58 MHz, there would be no point in using a baseband composite connection over a radio-frequency modulated signal. But there is.
Sharpness applies edge enhancement to the resulting image
Hm. On my TV, there is indeed a sharpness control. Below center, it operates like your "resolution" (Y channel filtering, with no filtering at center), above center, it operates like your "sharpness" (edge enhancement). It might be less confusing if you combined the two in the manner I've described, and clearly indicated the center position with no filtering and no edge enhancement.