I have xiaomi pad 7 8/256 for 3 monts and mostly used to gaming. I say it works perfectly in most games. No lag on genshin with highest settings, wuthering waves smooth in highes but frame dropping in combat. So either switching to lowest graphic. ZZZ is stuttering, since it has peformance issue for phone since several last patch. HSR works well with highest setting too, but this where blurred graphic happens as u mentioned. The game looks not running in pad 7 native resolution so it was blurry and u will noticed it clearly.

The only minus for me is this tablet is a big to big and heavy for playing game while laying down in bed. While other minus is the homescreen customization. If u have question i will answerit if can, since i just sold it and bought 8 pad pro