Still slightly blurry. Will there be sharper images?
Yes. Remember, these images are the best that we have had of Pluto to date.
Eventually. New Horizon's data transmission rate out by Pluto is just 2,000 bits per second. Which means it would take hours of transmission time to send just one high resolution image. The scientists want to use the real-time bandwidth to send back data rather than images.
The plan is for the spacecraft to take lots and lots of sharp images as it passes, and then transmit them afterwards.