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I'd have thought it much more likely that the reduction in screen clarity was due to an extra layer on the screen to diffuse the light from the side LEDs, rather than being caused by the touch screen. Any light diffuser must, by its very nature, "blur" to a certain extent.
Is it necessary to actually touch the screen of the 700 to "activate" the "touch sensitivity", or does mere close proximity to it suffice? That would tell us whether the system they've used is genuinely touch sensitive or capacitive in nature.
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