Actually to be technical the pixels where probably taller than they are wider on the actual screen itself so they had to do wider pixels in order for it to look correct on there. Just like the doom example which displays the same kind of fatness when displayed on screens with square pixels.
So when displayed on a modern screen with square pixels the screen uses at least double the amount of pixels on the width causing the image to be naturally stretched.
Consider these facts...
1) When calculated the aspect ratio of the screen with the raw artwork straight out of the ROM from MK is around 16:10.
2) The original arcade monitors where 4:3.
3) They didn't letterbox it or crop out the sides.
4) the shape of the pixels on the screen where non-square
5) The game resolution was 399x253 yet it's on a 4:3 screen and thusly squashed to fit.
As far as I know the screens at the arcade tended to be 512x384 which again is 4:3.
Thinking about it the example X/Y images I showed aren't really wrong they just show what happens with the raw sprites when corrected (above) or non corrected (the one with the wide pixels). Just like my example from Doom.
My corrected pictures are from MAME with the aspect ratio for the game set to 4:3 so it treats the game much like the original monitors did.. minus the overscanning they did.
What does that all add up to? Not to the sprites being correct just raw out of the ROM without any correction.
I mean look again at this GIF of my corrected to 4:3 scorpion vs. the image taken directly off of an arcade cabinet.. how can one dispute this? Only if you are used to seeing it uncorrected.
Yes the screen was compressed onto the RGB monitor but that's what they designed and formatted the art for! They specifically designed and formatted the art on the RGB monitors used in the arcade!
It's true that in some cases it can end up being too compressed\squashed but I think my example GIF speaks for itself.