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ZFR: EDIT: Also, after a bit of analysis with a magnifying glass, it seems that it's not a pure interpolation algorithm, but it also takes into account the physical position of the 3 colour subpixels.
Yes, I left out the whole subpixel thing from my explanation, as that makes things considerably more complicated. It's still a major factor though, and in some cases it makes for some really odd results. For instance, with the barcodes I was talking about before, they were pure black on a pure white background. As such, you would expect any interpolation artifacts to be some shade of grey (R=G=B), but that was not the case. Some lines would have red or blue shadows at the edges, due to subpixel positioning.