Light projection. Others have hit on the psychosocial aspects, but watch a dull projector of the same video as an OLED TV and see how much better the TV is, and how the dim projector is worse than the real world. The simulated brightness and contrast play a big role in the “magical” feeling because our eyes are typically interpreting light via lower-level reflection.

Another way to reproduce this is to look around a big city with lights everywhere at night vs daytime.