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I think the exact opposite...
With ClearType the text looks much nicer and smoother than without it, without the jagged edges. It isn't very blurred, you can't even tell that it's blurred, just that it looks a lot cleaner. Not sure why you think it makes it look bad, but I couldn't stand the text without it. It almost gives the text the look of a higher res because it is much smoother and easier to read.
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