That's odd. On my Sony 46" I get zero pixellation with Blu-ray, Upconverted DVD, and 720p Apple TV HD movies. The only pixellation I get is on over-compressed HD cable, and it's mostly the boxy macro blocking you get during fast transitions.
Sony's default "enhancement" settings, and there are a LOT of settings, don't really help. All of those edge enhancement, noise reduction, and DRC pallet settings often make things worse. The noise reduction especially screws up deinterlacing of 1080i sources to 1080p and is best left off.
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