Caption: "Slow-motion film of the star ε Aquilae taken with the Nordic Optical Telescope on the morning of 2000 May13 for testing lucky imaging (which is one form of speckle imaging)." (Slightly edited.)
Features:
Yours truly will do their best to explicate, but caveat lector.
The turbulent motions constantly distort the wavefronts of light or, from geometrical-optics perspective, the paths of the light rays.
The seeing is good if the distortion is small, bad if it's NOT.
In longer exposure-time images, all one would see is a single larger fuzzy blob called the seeing disk which is the time-averge of the individual ones.
The human eye actually can marginally detect the individual blobs which we call twinkling (AKA scintillation). Nevertheless, we tend to judge the apparent size of star by region in which we see twinkling occurs.
Setting λ=0.5 μm (just guessing that the film effective wavelength is somewhere in the middle of the visible band (fiducial range 0.4--0.7 μm)) and using D_in=101 for Nordic Optical Telescope, we obtain an angular diameter for the blobs of about 0.05 arcseconds ('').
It has been claimed---by Diane Pypher Smith?---that ∼ 4'' seeing is available near the Las Vegas Strip. Yours truly will believe it when yours truly resolves Castor AB which currently have angular separation of 3.8''.
D_in(saturation) = (4.952'')*[(λ_μ/0.5 μm)/θ_seeing_disk('')] ,where D_in(saturation) is the saturation diameter in inches, λ_μ is wavelength in microns (μm), and θ_seeing_disk('') is the seeing disk diameter in arcseconds.
From this saturation formula, it's clear that with good seeing ≅ 1'', the saturation diameter is about a measly 5 inches. With great seeing ≅ 0.4'', the saturation diameter is about a measly 12 inches.
However, light-gathering power grows as the square of the primary diameter, and so yes, the bigger the telescope, the better for going deep (i.e., for observing faint objects).
That's why we keep making bigger telescopes (e.g., extremely large telescopes (ELTs) such as TMT, GMT, and EELT).
Its angular resolution is typically about 1 arcminute (') = 60'', but some sharp-eyed people may be able to do better (see Wikipedia: Naked-eye astronomy).
Taking the human pupil as the circular aperture, one can use the Dawes limit to estimate human eye angular resolution.
There is considerable variation between individuals, but typically for scotopic vision the pupil diameter is in the range 4--9 mm ≅ 0.15--0.35 in (see Wikipedia: Pupil: Optic effects). With these values, the Dawes limit formula,
θ_DL('') = (4.56'')/D_in ,suggests that human eye angular resolution as small as 13'' is possible.
However, the Dawes limit and the Rayleigh criterion are probably only part of the story in determining human eye angular resolution.
In any case, human eye angular resolution is too big for seeing (if it isn't awful) to be a limitation in naked-eye astronomy.
These techniques include lucky imaging, speckle imaging, and, creme de la creme adaptive optics.
None of these are currently available in UNLV's intro astronomy labs.
Actually, adaptive optics have gone a long way to reduce the need for space astronomy, but there are still many observations that can only be done from space.
There is no immediate replacement for the HST when it dies sometime after 2020 (see Wikipedia: Hubble Space Telescope: Orbital decay).