I wouldn't worry too much over that particular piece of information. There are all sorts of post-processing techniques that have very minimal latency impact. The sharpness filter mentioned above, scaling 1080p/1440p to 4k (at least via the very computation light upscaling algorithms the tvs use), etc.Vincent tweeted this regarding the input latency in 4k120 mode. This seems to indicate the blurriness ISN'T being caused by post-processing (if it was, there would be an input latency hit).
Worried this might be inherent to the way the panel handles 120Hz refresh rate. Maybe this is just how it looks when you overdrive the panel that much.
I have another 30 days to decide whether to return, hopefully we get an answer from Sony before then.
'Overdriving' the panel in this sense, just means you've increased the pixel clock rate to where it is capable of outputting the full ~8.3 mil pixels every 1/120s refresh cycle. If the tv is capable of that, (and thankfully it doesn't seem to have any issue with tv inherent stuttering at 120hz), then it is capable of that regardless of what is being displayed. What those pixels output, I can not see how it would matter to them, they are just assigned a color to display, blurred or not. And i would need to hear a very, VERY strong argument as to how displaying pixel perfect 1:1 the data that is sent over the cable, (and we know from the discussion about the problems with the hdmi 2.1 receivers that the 30 series cards are sending uncompressed data.. which also takes less computation) would not take the least processing of any possible output.
The only possibility for a hardware limitation imo, is if the tv is not actually doing a full progressive scan, but is interlacing because the pixel clock -can't- keep up with a progressive 120hz refresh.