IIRC, the 8500 used supersampling which is, as you say, rendering at a higher resolotion, then downsampling via whatever algorithm. This was proven when they compared the mage quality of the GeForce FSAA to that of the Radeons. You are also correct on Mutiosampling.
The GeForce 3 pictures exibited better removal of jaggies, but blurrier textures.
The GeForce 2 and Radeon pictures were nearly identical, exibiting sharper textures, but more apparent jaggies.
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