Problem:
I encountered this testing on a device with 1024*768 resolution.
I believe it occurs when there isn't a perfectly matching resolution. 
Solution:
I worked around this by using a custom theme which uses drawable for the splash screen instead.  This method will work for you as long as you are okay with "fit/fill/center" image display methods . (Probably not "stretch" or we will likely end up with a blurry image again anyways.)
Note:
This looks long, but it's actually not that bad.  I just wanted to explain thoroughly.
My Folder Structure
├───config.xml
└───res    
    └───android
        ├───drawable
        │       splash_screen.xml
        ├───drawable-hdpi
        │       splash_logo.png
        ├───drawable-ldpi
        │       splash_logo.png
        ├───drawable-mdpi
        │       splash_logo.png
        ├───drawable-xhdpi
        │       splash_logo.png
        ├───drawable-xxhdpi
        │       splash_logo.png
        ├───drawable-xxxhdpi
        │       splash_logo.png
        └───values
                style.xml
splash_screen.xml
- This is where you define what your splash screen will look like.
- You will define how the splash_logo will be used here (fit/fill/center/colors/etc).
 
 
- This sample has a white background with the splash_logo displayed in the center.
 
- Android will automatically select the splash_logo icon based on the screen size/density.  More on this under splash_logo.png.
 
<?xml version="1.0" encoding="utf-8"?>
<layer-list xmlns:android="http://schemas.android.com/apk/res/android">
    <item>
        <color android:color="#FFFF" />
    </item>
    <item>
        <bitmap
            android:src="@drawable/splash_logo"
            android:gravity="center_horizontal|center_vertical"
            />
    </item>
</layer-list>
splash_logo.png
- This can be a full screen image or smaller centered icon (or whatever your heart desires).
 
- I found it easiest to design for xxxhdpi density screen of 1920*1280 pixels.
- You should create your xxxhdpi density splash_logo.png with this as a reference.
 
- I wanted a centered medium sized icon, so I created one icon with half height (640) and approximately square.
 
 
- We need to generate the different density images so that we will have slightly more consistent look across different devices.
 
- You will need to copy these files into your 
/res folder. 
style.xml
- This is the custom theme that will use your drawable.
 
- Modify as desired.
 
- You may want to set 
parent= to whatever theme is currently being used by the main activity in /platforms/android/app/src/main/AndroidManifest.xml (Just so that you know the theme is available in your android setup.) 
<?xml version="1.0" encoding="utf-8"?>
<resources>
    <!-- Full screen theme with custom splash screen -->
    <style name="MyTheme.FullScreen.Splash" parent="@android:style/Theme.DeviceDefault.NoActionBar">
        <!-- Make it full screen (since plugins don't seem to work) -->
        <!-- Remove these 2 lines if you don't want full screen -->
        <item name="android:windowFullscreen">true</item>
        <item name="android:windowContentOverlay">@null</item>
        <!-- Use our drawable for the splash screen! -->
        <item name="android:windowBackground">@drawable/splash_screen</item>
    </style>
</resources>
config.xml (Finally)
- We need to link everything up with the config file!
 
- First, ensure you have this attribute=value pair inside the 
<widget tag: xmlns:android="http://schemas.android.com/apk/res/android" 
- We need to point the main activity in the manifest to our custom theme with the 
edit-config tag.
 
- And we need copy over our custom theme, drawable, and logos to Android with the 
resource-file tags. 
<platform name="android">
    <edit-config file="AndroidManifest.xml" mode="merge" target="/manifest/application/activity[@android:label='@string/activity_name']">
        <activity android:theme="@style/MyTheme.FullScreen.Splash" />
    </edit-config>
    <resource-file src="res/android/values/style.xml" target="app/src/main/res/values/style.xml" />
    <resource-file src="res/android/drawable/splash_screen.xml" target="app/src/main/res/drawable/splash_screen.xml" />
    <resource-file src="res/android/drawable-ldpi/splash_logo.png" target="app/src/main/res/drawable-ldpi/splash_logo.png" />
    <resource-file src="res/android/drawable-mdpi/splash_logo.png" target="app/src/main/res/drawable-mdpi/splash_logo.png" />
    <resource-file src="res/android/drawable-hdpi/splash_logo.png" target="app/src/main/res/drawable-hdpi/splash_logo.png" />
    <resource-file src="res/android/drawable-xhdpi/splash_logo.png" target="app/src/main/res/drawable-xhdpi/splash_logo.png" />
    <resource-file src="res/android/drawable-xxhdpi/splash_logo.png" target="app/src/main/res/drawable-xxhdpi/splash_logo.png" />
    <resource-file src="res/android/drawable-xxxhdpi/splash_logo.png" target="app/src/main/res/drawable-xxxhdpi/splash_logo.png" />
</platform>
That should be all!
Troubleshooting: 
- You can check that all your resources are copied over correctly by inspecting
/platforms/android/app/src/main/res. 
- Ensure that your custom theme was injected into the 
/platforms/android/app/src/main/AndroidManifest.xml.