That is a problem with MMS. That is just about the maximum file size that you can send over MMS. Thats why any time some one sends you a video MMS it looks like garbage. If you want quality pictures, send them via a messaging service (i.e. hangouts, whatsapp) or email them.
I MMS myself a picture I took the other day to see if I could see a difference.I couldnt telll any fuzziness in that MMS picture from the picture I took with phone.
But the details of original picture size in the galley was just 1.18 MB.
It is when I send it to another phone that I see the difference... I just wish there was a way to change the size of the picture so it would turn out better in pic messages. Seems like this should not be an issue with a good phone.