The LCD display is a well respected brand.....Kopin, and it is the full 640 x 480 pixel resolution to match the core. There have been criticisms of FLIRs use of this small LCD panel previously but in truth, it is just a relatively poor implementation of a good panel. The eyepiece optics provide inadequate magnification.
As to why your images a not well focused. It should be born in mind that fixed focus lenses are effectively providing a compromise that is not ‘well’ focused at any point except that used to setup the focus point at the factory. Manual focus lenses provide excellent sharp imaging but require regular adjustment to suit the targets range. They also have relatively small depth of field with the f1 lenses used.
If you upload an image of what you are seeing on your monitor for a target positioned at 3m and one at 10m, I may be able to comment on your Specific units image quality.
For info, the Tau normally produces excellent fixed focus imagery. Adjusting the fixed focus lens will improve the focus at the distance to target that you are using but will degrade its performance at other distances. You need to set such a lens to the Hyperfocal distance.
https://en.m.wikipedia.org/wiki/Hyperfocal_distanceYour lens looks perfect. No problems with the AR coating which is very good news.
Fraser