Probably the anti-glare coating.
If the screen looks more fuzzy at different angles then it is definitely the coating on the touch film. That reduces shine/glare from lights in the area, as well as reduces the look of finger smudges.
The PVP is a resistive touch screen, which means there is a poly(ester) film on top of the glass display. It's fairly common to put coatings on that poly to reduce glare, but each manufacturer does it differently and makes trade-offs.
http://www.dawar.com/touch-screen-tools
Glare & finger smudges are a common problem with capacitive touch screens, which have a glass surface. Some touch computers/monitors are unusable in bright light areas because they do not have anti-glare coating.
(1) Avoid using fancy (photo) images and colour gradients: such as on borders and rounded tanks/motors/etc. That will help reduce the effect of the fuzz.
(2) Increase the backlight intensity, but that will reduce the backlight life. It's set less than full intensity to give you longer backlight life, by default.
Otherwise, you'll have to try a capacitive touch IPC or try a different brand of touch panel. Just remember you trade off anti-glare for clarity.