I agree the XL-1S is less sharp than other cameras, which is something I have talked about when comparing my GL-1. If you look at the XL-1S image on its' own, it looks fine. I do find the image is very clean compared to other cameras though.

When you say composite is cleaner than SVHS for niose, something seems off. Again, I think this might go back to using the higher sharpness setting, in that using composite to view with wouldn't pickup the details of oversharpening as much as the increased deatail of SVHS. Especially since my experience with SVHS is the the luminance always seems a bit exaggerated, which is the same effect that increased sharpness has on edges, increasing the brightness of fine detail. So it is almost like doubling up.

I am also curious, what kind of monitor are you using? I use a home TV for quick monitoring and can never judge the quality of an image by it. They just don't have the filters and resolution to give you correct feedback. Don't know if that might also have an effect. (?)

Now, most of the above is just guessing, and I could be way off. Just a couple more thoughts.