OK, been playing around, my unit came with the Brightness turned way down. Now turned up the photos are appreciably better resolution, pretty nice

The muddines I stated earlier is gone too, however the white balance is still NOT optimal. Not horrible either, and I would say in comparison my iPad2 is a little toward the red spectrum, but more neutral than the new iPad which is just over into the green. Foliage looks better but looking at the whites they are not quite neutral, and I cannot find any way to change the settings. Will call Apple Support and see what they have to say.
Go over to ZDnet and they have a review, they say it is "warmer", which I disagree with, but they have a side by side shot that shows what I mean. Makes me think it is not a defective unit issue, unless they had a batch.
look down the page at the side by side shot :
New iPad not a must-have, but an amazing display | ZDNet