I don't think it was designed for reading church signs, they don't have many churches in China!
As an accident camera it does a decent job, as a cheap accident camera it does a very good job. That church sign wasn't going to cause an accident, it wasn't even on the road.
You will find that if you get away from the trees with their millions of leaves that all need recording, then the pixilation will reduce considerably or even disappear. Under trees all dashcams can show pixilation, however good or expensive.
If you want it to do something else then state your requirements and people will give advice, otherwise the advice is that it is working as expected and it is one of the better dashcams for reading signs/plates, although with the tiny plates you have on US cars it will struggle unless they are very close. The pixilation is normal and generally doesn't affect it's effectiveness as an accident camera, other than to increase the storage capacity which is a benefit and reduce power consumption which can also be an advantage.
Pixilation maybe a little less noticeable with the firmware update, but don't expect it to disappear completely.