Blurry comes from JPEG.
Text and drawings *need* sharp edges. So the answer is either vector or lossless graphics. Vector graphics have a lot of qualities. But they have to be drawn each time they are put on screen. That takes time and computing power. Meaning it eats up the battery. Better check out PNG, GIF, even BMP. PNG comes with better compression -- smaller files -- and the ability to use a color index -- you have a table with only the used colors.
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