Sorry for the necro, but I'm still getting this problem. I'm also using a 7970 (playing at 1920x1080) and I find that, at 100% UI scale, the UI is simply far too large (the navball is the most annoying part). The UI size and font rendering was fine before 1.1, so I don't know why there's suddenly this issue. I have to set the UI to 80% for it to be a reasonable size, but this is when the font simply blurs; it's identical to Plusck's screenshot above.
Scott Manley's 1.2 pre-release video mentioned changes to the font rendering, so I do hope this has been fixed. I've held off on playing 1.1 because it's far too irritating to ignore.
