Non-GPU graphics are too slow for high resolutions, so LoseThos will always be 640x480x 16 color.
Counter-Strike ran at well over 30fps in software mode at 1024x768x16bit in my P4 from 2002. A full-quality software rasterizer (which does 32-bit color and bilinear texture filtering) is capable of running Quake3 at over 60fps at 1024x768 on an i7.
That flight simulator demo he shown... at 640x480x4bpp, it should probably run at over 1000fps on his i7. Quake1's software renderer, if multithreaded, would exceed that (I'm pretty sure it averaged less than 40 cycles per pixel on PPro, and that's without MMX, SSE, or anything of the sort; and manually scheduled for Pentium1)