Of course the smaller pictures is blurry....

The iPad/iPhone will scale the picture to fit your screen so when you make it dramatically smaller, it will look blurry because its been blown up to fit. Look at it in a web browser, email it to yourself and look at it on a computer, the picture is smaller in size and data, which is the whole point of this awesome, simple and perfectly working app.

Jann101 about Simple Resize, v2.20