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Someone posted that these filmed street scenes were made for background screening for future movies. Like when a couple is in a car and scenery is shown moving outside of the windows giving the feeling of the car traveling on the street or road.
And that could explain the quality although the description at the start of the video said it had been restored so they could have done something there too.
As to street scenes, there was an episode of the old Burns and Allen show from the early 50s shown again not long ago on the Antenna TV channel where almost the entire episode was staged in the back of a cab. The scene mostly consisted of a long conversation between Gracie and Blanche discussing how Gracie would carry out one of her hair brained ideas -- and keep George from finding out.
The LA freeway scene was obviously filmed for background and must have been fairly short because it was repeated. It could have even had some studio drivers under direction driving some of the cars. The same few cars including a 53 Packard kept appearing thru the back and side rear window as well as Gracie's favorite department store before it was merged with another chain and changed names. The Packard was first on one side, then directly behind the cab and then you would see a glimpse of it on the other side of the car and a few minutes later you know the sequence repeated because the May Co department store was in view again.
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