The avatars shrink and expand based on the width of the container and the number of avatars. On new sites without many users (avatars) to display, they are going to be large and pixelated. Once you have around 10 of them, they will look fine. http://seventhqueen.com/themes/kleo/home-default/
If you’re only going to show a few avatars, then break the row up into 3 columns and put them in the center column. That will make their container smaller, therefore the avatars will be smaller.
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