Yes your view looks great wish mine did that.
I followed each of your steps precisely and still my image is pixelated. In soft proof mode it looks good. I sent the file to Fred perhaps you have it but other files look the same way.
I passed your images along to Mike... It is still very early am here in Florida.
It looks fine here, butI need to investigate some more. The wonderful detail is missing in the thumb, but I sort of expected that.
Mike will have the answer.
(off the wall) Far fetched.... Any chance you have a softener filter on in GLOBAL FILTER?
Thanks for your help in sending the images.
Fred