Hi @uppaway. Welcome to GoDaddy Community! The photos should have resolutions that are of good quality. The only thing that I can think of that would change that would be zooming in on a specific part of a picture, which could make them look like they are lower resolution.
In regard to templates, the new Website Builder doesn't really use them. Instead, there are quite a few themes you can choose from that change the overall color and font style for the site. For more information, you can see this Help Center article. Hope that helps.
@uppaway @JesseW The new website builder and store do not offer zoom on photos, so it's not that. (Another feature that is lacking.) The quality of your photos will depend on the resolution you took them in, the DPI you sized them in, and the fact that GoDaddy compresses the images. To learn more, search the forum (community) regarding the compression issues.
Hey @Hopeful. This is what I was referring to in regard to zooming in on photos. It should be available in most places you have images. Although, doing this didn't really cause a resolution issue for the stock photo in question. I'd be happy to take a closer look at any specific examples.