Keep in mind also, that chess has advanced A LOT over the last 100 years.
Yes, I think people often underestimate this. Great players of the past are known through masterpieces that are reprinted in game anthologies. If people had followed every single game they played they would notice how uneven they were compared to players of today.
When Grischuk has two minutes for a dozen moves in a very complicated position he can blitz out 7-8 perfect moves. Then in the rare occasion when he makes a mistake this is what is noticed. A hundred years ago Burn could in the same situation light his pipe and think for 30 minutes, play a few moves, and then analyse the position for hours during an adjournment, and still play a similar move sequence worse than Grischuk. And if he did make a losing mistake no one would remember or care, because it would be one of all those games that aren't reprinted or discussed.
I haven't got Nunn's book but looking at a few games from the tournament he mentioned I just noticed this example where Burn (then a top 25 player) is up against Fahrni. Burn with black is to move, and is trying to find a way to save the draw:
White is threatening the immediately winning Ra5 but black has a simple draw with Rxa7 followed by Kxa7 g4 Rb4 Kd5 Rxg4 e4 etc. But Burn plays g4. This is of course followed by Ra5 (Rb1+ Ka6 1-0). Maybe a time trouble mistake? No, he had lots of time with a time control just passed. Maybe temporary chess blindness? No, Burn annotated the game in the tournament book, and concludes that white is winning in the position in the diagram.
I like the old masters, and many were far from chess professionals. As someone said, many were madly in love with the chess goddess, while Lasker had an absent minded affair with her in between pursuing his real interests. The old masters were great for their day, I just think people shouldn't compare their actual playing level with that of today's top players.
Some quotes from a very good review by John Watson of John Nunn's Chess Puzzle Book, where Nunn compares Karlsbad 1911 with Biel 1993:
Nunn: "I reasoned that a good way to eliminate differences resulting from 80 years' advance in chess theory was only to look for really serious errors"
Watson: Notice this important step. I'm always hearing (and reading) that "If the players of yesteryear could only catch up with opening theory, they'd be as good or better than today's players"
Nunn: "I was quite surprised by the results. To summarize, the old players were much worse than I expected. The blunders thrown up by Fritz were so awful that I looked at a considerable number of complete games 'by hand', wondering if the Fritz results really reflected the general standard of play. They did."
Nunn: "In order to be more specific about Karlsbad, take one player: Hugo Süchting (1874-1916). At Karlsbad he scored 11.5/13.5 or 'minus 2', as they say these days - a perfectly respectable score. Having played over all his games at Karlsbad I think that I can confidently state that his playing strength was not greater than Elo 2100 (BCF 187) - and that was on a good day and with a following wind. Here are a couple of examples of his play"
Watson: You have to get the book to see these examples of Süchting's horrendous mistakes and misunderstandings. Nunn also has talks about more positions, and then includes a section of 30 Karlsbad "puzzles", representing all of the players. The positional mistakes by the top players are particularly telling.
Nunn: "Returning then to the question as to how Süchting scored 11.5 points, the answer is simply that the other players were not much better. If we assume Süchting as 2100, then his score implies an average rating for the tournament of 2129 - it would not even be assigned a category today."
Nunn: "It is quite clear that the Karlsbad players were far more prone to severe errors than contemporary players. Even the leading players made fairly frequent blunders. Rubinstein, for example, who was then at virtually the peak of his career (1912 was his best year) failed to win with a clear extra rook against Tartakower ... He also allowed a knight fork of king and rook in an ending against Kostic..."
Nunn: "The second problem area was an inclination to adopt totally the wrong plan...[examples follow]..."
Nunn: "The third main problem area was that of endgame play...[horrendous examples of elementary blown endgames follow]..."
Nunn: "Doubtless, some will respond by searching through contemporary tournaments and finding errors just as serious as those presented here. However, a couple of words of caution. Remember that all the examples given here were played in one tournament. Of course, it is easy to present a player as an idiot by listing the very worst blunders from his (or her) entire career"
http://www.chess.co.uk/twic/jwatsonbkrev82.html
The time limits were of course much more generous a century ago than they are today. Maybe Nunn exaggerates a bit, but it could also be added that the mentioned Süchting was a decent player for his day. In Prague 1908 he drew not only Rubinstein, but Maroczy, Marshall, Vidmar, Teichmann and Spielmann and scored -2 in 19 games. In Düsseldorf the same year he drew Marshall and Spielmann and had scored +1 after the 15 rounds. He drew the three games he played against Rubinstein 1908-11.