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You can always just get a higher resolution texture pack. Default minecraft is either 16x16 or 32x32 (I can't remember), but I'm pretty sure I've seen some going up to something like 512x512, maybe higher.
Yeah, there are some awesome graphics packs out there. My favorite is "Gamedoku"
I use Painterly myself. It's beautiful.
Yes, there is an HD texture pack that looks quite stunning. I mostly just use the default though, as sometimes the alternate textures break when a large update comes out.