Video smoothing often makes the picture way too mushy for my taste, especially if the original resolution is very low. I prefer good crt shaders like the zfast shaders from @ghogan42.
As for other video settings, I prefer the "core provided" aspect ratio, because I don't like, say, a 4:3 picture stretched to today's common 16:9, or the 3:4 ratio of many classic vertical games stretched to the native 4:3 on my DIY cabinet, making all game characters appear a little overweight to outright obese.