Oh, no.
If you have a retina display, and set it to less, the real display is still twice the apparent display.
I set my display to "Looks like 1024x640", and my display is really 2048x1280. There's at least one font that uses the high-res display for clarity, and any app can still use high-res icons if not actual graphics.
To work with a 1024x576 game display, I set base resolution (settings -> video) to 2048x1152, and scale to 1024x576. I can then toss the Lanczos (32 sample) downscaling in, and the "fuzzy/blurry" problem goes away -- the downsampling is actually as sharp as "discard excess pixels". (I clip the display capture to only the 576 lines I want).