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If I look up close at my nook ST the fonts look a little fuzzy too, like news print or printed paper does (which is part of why eink looks "better" reading wise than LCD or CRT pixels). I don't notice it at all unless I am holding the nook ST about 6 inches from my face though.
That said, one of my hopes for the next generation eink screen is 768x1024 resolution, 6 inches still and 256 shades of grey with maybe double the contrast (split equally between white point and black point). Color is all nice and everything, but not at the expense of a lot of money, reduced contrast, lower battery life (though it probably won't impact it too much) or the same/reduced resolution.
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