Downsized sprite loses a ton of fidelity on stage and in thumbnail compared to Scratch 2

[fsih]

Expected Behavior

Scratch 3 should be better!

Actual Behavior

Scratch 2: it's cute!

Scratch 3: what is it?

Steps to Reproduce

Compare
https://scratch.mit.edu/projects/73399968/#editor
https://preview.scratch.mit.edu/#73399968

Operating System and Browser

Windows 10 Chrome