Why do images copied to Libre Office Writer look so pixelated?

When you copy this image

and paste it (via drag and drop from Google Chrome) to Libre Office Writer (4.3.3.2) you get:

Why is this so pixelated / fuzzy?

Somehow it does not copy the original image. How can I tell it to copy it in the original size by default?

But even after setting it to the original size, it is still pixelate. How can I fix that?

This is a known issue in LibreOffice (tdf#86675) where PNG images being imported/inserted and scaled are using "Nearest neighbor" in rendering the document canvas, rather than more common Bilinear, or BiCubic (Catmull-Rom) pixel interpretation on scaling. Also, for now in LibreOffice, believe PNGs with Alpha channel are always "scaled" using nearest neighbor.

Especially an issue on Linux builds, less so on Windows builds.

So, if you can prepare your PNG to the exact size needed, as well as prepare or convert to a non-Alpha channel PNG (using ImageMagick's "convert input.png -background white -alpha remove output.png" or similar utility), you should be able to have acceptable image insertion and rendering in a LibreOffice document.

See: https://bugs.documentfoundation.org/show_bug.cgi?id=86675