I don't understand a whole lot about photography, but my wife takes pictures and I've picked up a bit. Yes, the blur is actually quite desirable, as real filming uses a narrow aperture (like emanswfan already mentioned). It makes objects in focus stand out against less focused back- and foreground. How often do you look at a real photograph or video, even when using a wide aperture, and see everything in as perfect focus as shown in the PT? Heck, that's even how our eyes work. It's better if parts of the picture are blurred as shown here. Emanswfan is spot on!