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I'm posting this with the hope of helping others avoid wrestling with this issue. Some of the text I rendered was coarse as the antialias effect was lost. I couldn't figure out what was causing the issue. Here is as shot of the effect:
It turns out that draw() needs background() called first before rendering text to avoid the coarse look of the text.
I found the explanation here after discovering the a solution myself after some frustration, http://processing.org/discourse/beta/num_1232926733.html
Hope this helps
Answers
This was a rhetorical question so I'll mark it answered.
Thanks for sharing. Note this is already in the Technical FAQ: Why are text and graphics so ugly and blocky?
But putting the information in several places can be useful (and your image helps).
I have also found that using createFont(...) and using that font throughout your sketch works pretty well too.
Even with createFont(...) the display is ugly on an empty background.