Yify torrents are total garbage at any rate, you'd be better off just not watching whatever you wanted to watch rather than stare at the eyesore that is Yify. Seriously, Yify encodes are like watching something through a window coated in vaseline.
Yuck. This is a good example of why you're supposed to reduce the dimensions of the video if you want to reduce bit rate with H.264. If you simply reduce the bit rate, you end up losing detail.
e.g. for a video with a typical level of motion, if you want to achieve 1 Mbps, encoding at 854x480 is going to look significantly cleaner & sharper than encoding at 1280x720 (even when upscaled).
This is why adaptive streaming uses quality levels with varying dimensions. e.g. on Netflix, the low bandwidth streams are not 1920x1080, as that would look like garbage.
No...I'd rather not watch something fuzzy. If you think it looks OK, then you may as well download proper SD rips. They'll look better with less artifacting.