The tablet UI expects 32x32 favicons but very often websites only provide 16x16 images. We're stretching all favicons to 32x32 and they're looking pixelated because of that. Instead of that, we could add a dynamic 32x32 background image to the 16x16 favicon using its dominant colour.
Comment #0 mentions tablet UI, but the pixelation also occurs on phone (e.g, cnn.com's favicon in stock vs: Nightly).
You need to log in before you can comment on or make changes to this bug.