You're right about that. A friend's dad was a gearhead and had one of those. It always seemed dim, practically unwatchable during the day and even at night it was flat which made darker films hard to watch.
But it was a mid-80s model and I figured 10 or 20 years later the tech had improved.
It was in the room with the furniture that we weren't allowed to sit on, and we weren't allowed to think about using that TV. (I mentioned once when we were unsupervised that maybe we could turn it on and watch something, and the color drained out of his face like doing anything like that would surely result in a very painful death. After he calmed down, we went outside and played with bugs or something instead.)
As far as I could tell, the old man (who was much younger than I am at this point) only ever switched it on for watching football on Sunday afternoons. But once or twice I'd wander by and -- with permission, and being careful to touch nothing -- try to watch part of the game.
It was a miserable thing to view. Big, blurry, dim, and just broadly indistinct. I didn't see the attraction compared to the perfectly-good 20" Zenith we had at home at that time that seemed so much more vibrant and useful. But the speakers sure sounded better on the projection set, so I guess there's that.
The tech did improve. The brightness did get a lot better, and so did processing (including using tricks like Velocity Scan Modulation that sought to improve brightness, at the expensive of making geometry an deliberately-dynamic thing instead of an ideally-fixed thing), and the colors improved. Things like line doublers and scalers and higher-resolution electronics to drive the tubes did improve some aspects of the blur that was apparent, even with regular NTSC sources. But those same improvements were also made in direct-view CRTs; after all, they were both the same tech.
So CRT rear-projection was as good as a person could get for a bigger-than-direct-view for a long time, but the fidelity was very seldom particularly awesome on an absolute scale -- at any pricepoint.
Competing rear-projection systems like DLP and LCD began to dwarf it in the market not long after the turn of the century. Despite their hunger for expensive light bulbs (and single-chip DLP's own inherent temporal problems), these new players were often cheaper to produce and sell, came in smaller packages (they could often rest on furniture instead needing their own floor-space), had fewer setup issues, and fared pretty well in brightness and geometry.
CRT rear-projectors then got pushed completely aside as soon as things like plasma displays became cheap-enough, and big LCDs became good-enough -- somewhere between 2006 and 2009, on my timeline.
(CRT did last a bit longer in front-projection form, for people with very serious home theaters [think positively-enormous screen, tiered seating, dedicated space, and some blank checks], but LCD caught up there soon-enough as well.)