Flicker was hardly noticeable on my Polostar, and definition was great at 800i. By borders I mean up and down, the usable display area will be a little rectangle in the middle of the screen. GroovyMAME goes for an interlaced mode to achieve the greatest definition your monitor can make, only once it's determined integer scaling is not reasonable.
If you think it was doing 320p before it's because you had modified the preset to do so (modify progressive_lines_min in the corresponding crt_range line).
The Frogger case is different. MAME reports it as 768p because the old patch to force it be 256p has been removed from GroovyMAME.