But analog tapes are capable of storing over 1100 lines of horizontal resolution. Even though that amount wasn't needed here in North America or Europe.
And that's a key point. In America during the run of TNG and Highlander, standard definition tapes only ever had a 480i signal on them. Just look at the screenshots here. We're fortunate CBS is going back to the 35mm film negatives for TNG!

Somehow I doubt that TNG was edited in Type-C since that was an antiquated reel-to-reel editing system, evn in 1987, and Betacam SP had a higher resolution and it would've been cheaper by the hour.
"Home for ST:TNG in the fourth season became The Post Group's new Digital Center in Edit Bay B. ST:TNG moved so it could work entirely in the digital format (D1) and abandon the fickle one-inch analog tape format. The reason ST:TNG was analog for three seasons is simple, the technology just did not exist."
-- The Special Effects of Star Trek The Next Generation, The Official Star Trek Fan Club Magazine
***
In fact, you can see the tape reel cases at 00:16 in the video below on the left-hand shelf:
[yt]http://www.youtube.com/watch?v=w08BlIyXzrE[/yt]
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