I attached another photo which describes the issue pretty well: even the in-focus part of the image looks murky and hazy. Close focusing is sharper but as soon as the distance increases, it gets hazy. I don't think it is solely a focus issue maual or any of the auto focus modes make a difference. Has anybody ever heard about the sensor getting stuck (since it is moving during shake reduction) in a certain position?
The crop is from an image shot with the 35mm macro limited, the picture should be very sharp even at the 2.8f i shot this at.
Thank you all for your great input! I will still try and rest to factory defaults and do a firmware flash.