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I think I know what you mean here, you mean when the screen shifts from one map tile to another when you reach the edge of the screen. If that is what you mean, LA Switch doesn't do that anymore. The camera scrolls properly and doesn't shift map/screen tiles like it used to, so the blurring...

Or maybe it's their way of hiding the HUD, which is perhaps the case.

Nice comparison photos to show the new artstyle in context. The remake seems to have the borders of the screen blurred... I wonder why

No. I was so excited when that Ghibli-like intro played, it got my hype up to see the opening of LA, one of my favourite 2D Zeldas in such great form... LA the first official 2D HD Zelda in history... And then they showed gameplay, talk about bait and switch! He looks like a fragile garden...