Propose changes to the model’s architecture, distribution, or training objectives to mitigate the tendency towards generating blurry outputs. Explain your reasoning and any potential tradeoffs.

Modify the VAE to use a non-Gaussian latent space (e.g., use a mixture of Gaussians or a more complex prior) or introduce an additional regularizer that penalizes blurry images based on their pixel-wise differences from ground-truth sharp images. This would require balancing between generating diverse outputs and avoiding overfitting.