Zoomed in images blurry on iPhone 4?

I saved a picture from Facebook onto my camera roll/photos (whatever you call it) and when I zoom into it to look at the details, it's really pixelated/blurry. My iPhone is jailbroken and I was wondering if there were any apps/tweaks to get rid of the blurriness?

My guess is that the zoom on the iPhone is NOT an optical zoom but a digital one. In that case you can't expect much in the way of good resolution images from the phone

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