at first I'd say that blurry picture is nothing innovative if you speak about DLSS. Besides too much sharpness or too much blurriness is not good either way. DLSS brings nothing new except the FPS is higher? (correct me if I'm wrong) If that's the case then it's because the image quality is down and that's how I see it from the TPU review of the DLSS.
To summarize. Nvidia didn't invent anything new with DLSS as you perceive it. Blurriness for me have been with us a long time. Calling something DLSS and telling people this is a new technology isn't ok. Maybe it brings something new to the table but, I hope, this is yet to be seen. NV's focus, as we all know, is on money so this DLSS is more of a marketing than actual innovation for me (innovation with poor image quality). Especially when they come up with some new tech ditching all other 1-2 years old innovation bringing something new to the table to charge more for it.
I stick with AMD and open techniques for improving image quality and implement new stuff. This is just another way for NV (that's just my opinion) to give "something new that only they have" (but in fact it's been in the market already developed) to charge more and convince customers and game developers that's they way to go and of course charge more.
Just like it is with G-Sync and just like it will be with G-sync compatible ( which in fact is free sync). that's just lame.