The original USGS 7.5 topo maps were created by extracting an elevation point every 30 meters. Contour lines connect the same values and are shown wherever elevation changes every x units (x is larger in rugged terrain, smaller in flat terrain).
What you've created is more detailed, using a 10 m DEM. The jagged nature of your lines could probably be smoothed, but I think your contour lines look pretty good and are probably more precise than the old topo maps.
Greg