When you send a photo as a photo, WhatsApp re-encodes it. In standard quality the long side is cut to roughly 1600 px and the JPEG is compressed to a small file, often around 100 to 200 KB. With the HD option (the HD button above the photo, or Settings › Storage and data › Media upload quality › HD quality) the limit rises to about 4096 px and the file to about 1 MB, but it is still recompressed.
The blur people complain about comes from big, detailed originals being crushed in one step. A photo that already has the right pixels and a clean encode survives the second pass far better. That is what the WhatsApp presets here produce.