It doesn't look blurry, the textures are nice. The horses look like the videos, with the bulging muscle details. You walk along a rock wall early on in the game, and the rock textures seemed crisp. Some other rocks by a river had some normal mapping or one of those fake depth masks, it looks good.
But like I've been saying, at times, the jaggies are very noticable. Does anyone remember the original VF4 on PS2 ?
Every once in a while, it looks like that. You get the texture crawl along a sharp edge. The towns are where you notice it the most. Out in the wilderness, the IQ looks great.
I'm no expert but I'll be surprised if the PS3 version has zero AA. It seems to me like it's not a constant FSAA, but there is some form of edge smoothing, at least on some things.
I know there is a lack of PS3 streams. Wished I could help, but I don't have the equipment. My X1800 can only capture s-video or composite.