my friend installed iOS 7 yesterday on his iPhone 5, but the dog and folder backgrounds don't blur correctly. he has the default space wallpaper (as do I) and his doc is a solid blue/grey, as are folder background, whereas mine shows light gradients that reflect what's happening in the background. i'm still on beta 6 as i haven't had the time or energy to restore through itunes to get gm and move up from there. anybody know what's up with this phone? or is anybody having the same prob?
Tell him to check if the Increase Contrast option is turned on in the Accessibility section in Settings. It has to be turned off to get the blur effect.