nick, if that is useing the same network that all web phones use, then the low picture quality is probably because you are going through a proxy server. Web phones, because of their limitations from a normal browser, need to go through a proxy server on the gsm network that converts web pages into text only. Chances are while not effecting the text layout because it is not needed for your phone, it is heavily compressing the images so you can actually download them at sane speeds over the slow data network.
Man I soooo can not wait for 3G.