Actually, they are arcs, but the arcs are orientied in reference to the center of the display. I doubt that the contact graphics in the game change depending on bearing. However, simply having smaller blips would be nice. Might also consider removing the small "blip" that appears for aircraft altogether (or making it invisible) as PPI displays for aerial search radar did not come until the very end of the war, I believe.
Here is another image:
And here is one where the contacts are not clearly defined as arcs. (But this may be because of the range scale. The arc's size is a direct measurement of the width of the contact in relation to the sensor, i.e. the "width" as seen on the display would change with relative distance.)
www.de220.com/Electronics/Radar/Radar.htm
This is from the
USS Cumberland Sound she entered Tokyo Bay at the end of the war: