Why do all Wallpapers have terrible quality?

[budf0x]

Am i missing something? Every wallpaper i download has terrible quality when you set it as the wallpaper on my droid. My friends iphone wallpaper and friends evo wallpaper looks HD. Is there a way to set wallpaper on our phone to preserve the quality of the picture?

 

[Quicksilver7714]

I think that it might depend on the initial size of the wallpaper.