We have a bicubic-upsample+detail texture option for the next PC patch that will help alleviate the blurry textures in Rage.
In case you don't know what a "detail texture" is, it is basically having a small texture with some 'generic detail' that can easibly be tiled many times over textures. Unreal Tournament 3 and Gears of War do this a lot, and it makes the textures seem very sharp and detailed, even though the base textures are often poor.
Examples of detail-texturing from http://udn.epicgames.com/Three/TerrainAdvancedTextures.html:
http://udn.epicgames.com/Three/rsrc/Three/TerrainAdvancedTextures/DGDetailOff.jpg - http://udn.epicgames.com/Three/rsrc/Three/TerrainAdvancedTextures/DGDetailOn.jpg
