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You need to view the file on a device that supports the KF8 format (which should allow higher resolution images). When sideloading to an iPad, you're only seeing the mobi format (which doesn't support higher resolution images). Or ... the newest version of KindlePreviewer should allow you to produce an AZK file--which is specifically designed for sideloading to the Kindle app on an iOS device.
Your friends' Kindle devices would very likely be able to view the KF8 portion of the file you produced (rather than the lower quality MOBI portion).
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