Blurring it absolutely reduces moire at the expense of distorting detail.
So now you just have another thing that's larger than a pixel (the blur area) that's reducing the effective resolution of your display, and you can't just say "the pixels are too small to be seen at this distance."
There will be a point where increased resolution isn't any use. When that happens they'll stop making higher-resolution TVs because human beings won't go into the store, look at the TV from far away, and say "holy shit, that has so much more detail from this distance than I've seen before."
Hasn't happened yet. We still have further to go before we hit the human visual sampling limit even for far away viewing, let alone close-up detail like reading a page of text in a scene or accurately representing a houndstooth jacket.
So now you just have another thing that's larger than a pixel (the blur area) that's reducing the effective resolution of your display, and you can't just say "the pixels are too small to be seen at this distance."
There will be a point where increased resolution isn't any use. When that happens they'll stop making higher-resolution TVs because human beings won't go into the store, look at the TV from far away, and say "holy shit, that has so much more detail from this distance than I've seen before."
Hasn't happened yet. We still have further to go before we hit the human visual sampling limit even for far away viewing, let alone close-up detail like reading a page of text in a scene or accurately representing a houndstooth jacket.
A blurry houndstooth is not the same.