That is not normal viewing distance!!!!!!!!!!!
Jesus. Welcome to the ignore list. I can't deal with this anymore.
There's not enough face palms in the world for some of the logic around here.
This is what you've done and why you see pixels.
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What? Why are you having such a fit!
The above is just a screenshot and only a screenshot. Nothing more.
But properly viewed on the iPhone 5 ITSELF, (the actual app) yes, that button is pixelated. The "retina concept" only works under certain conditions.
It's not like Apple made pixels disappear.