my wmvs don't look like shit, nor do many others. just encode them at higher quality at same size as the original video, and voila! they look as good as any format.
and yes, mac users can use a player to watch wmvs, although originally they were sol.
this looks exactly - and i mean EXACTLY - like the uncompressed avi
http://www.manofmuscle.com/lon_chunk_1.wmv
the main difference to me with wmvs - assuming you don't encode them at a poor quality or low bitrate - is that the viewers aren't forced to download the entire video to watch it.
most sites out there i see with wmv's stream 'em at around 347k (i see 347k on a lot of gay sites especially - don't know why). well, of COURSE they look like shit! if they would encode 'em at 500 or better for a 320x240 and 768 or over for bigger, they would look just fine. but some webmasters are too afraid of bandwidth bills so they give their members bad-looking video.
want to see the KING of wmvs? go to
http://www.brookeskye.com and watch the ULTRA HD clip. you'll find the link under the player on the right. HD is some exciting stuff!