I have all of my contacts in my gmail account with decent resolution photos (very few under 720p). You would think that this would be the optimal way to have your contacts stored but it seems that when the contacts sync with the people app their photos magically come out looking like pixelated garbage. It's absolutely atrocious.
I have this same issue with album art. I synced my entire collection with Google Music. All the artwork looks great when I view it on my computer and on my old school Droid Incredible but again, once it syncs it becomes pixelated. The majority of them become unrecognizable.
I seriously hope that someone has some ideas as to how to fix this. It would be a shame to have such a cool looking OS/Phone plauged with so much ugly.
Have you concidered Fullscreen Caller ID? I use it and love it..... There is a option to have full size images to contacts...
The fullscreen app would only make things worse because I would then be stretching an already pixelated photo over the entire screen.
It looks like the only way to fix this problem is to manually add the photos on the phone because gmail automatically compresses any photo you upload in to it so when it syncs it will look crappy on the phone no matter what I do. What a brilliant design! So I get to spend my weekend manually uploading photos for 125+ contacts. How is everyone else getting photos in to the people app? I can't be the only one that would like it to look decent. I hate Apple but I do have to give them Kudos because this would never be an issue on an Apple product.
Still no update on the album art issue. Dragging and dropping seems to loose the album art altogether same with syncing through Windows Media Player. The only way I've found to get the hi-res album art is to manually change it within google Music. Luckily, I can show hidden files and see the album art in their respective directories on my computer but again this will have to be done on all of my music. Perfect.
I know no one from google will read this and if they do I doubt they care but it's a shame that my new phone will require hours upon hours to get it set up the way it should be while my older Droid Incredible was seamless to set up (partially thanks to Sense). ICS may have pretty menus but as far as getting it set up, it has been an absolute nightmare.