its your MIP level (and aa\af)
MIP will blur textures from angles and further distances, similar to that of aa and af, but aa\af keep the textures sharp at the same time, and mip doesnt soften the edges
also.. a lower mip will give you alot more FPS compared to a high mip, plus a high mip just plain looks dumb because everything you see in the distance is also very sharp looking.. so ya, theres nothing wrong with your card, everyones does that, it just depends on how high\low your mip level is set on LFS