Unity level blurry in the background

Look at your texture import settings. $$anonymous$$ess around with anisotropic filtering and mipmaps until you get the right result. The colouring issues happen because of real-time lighting- the amount of light fallin on each surface is different, therefore they look brighter and darker than each other! Check your surface normals- it looks as if they're curving into the wall on the edges, make sure they are pointing forwards all over the object.

$$anonymous$$ake sure you use deferred lighting. In forward rendering, only a limited number of light sources can be used.

Edit: since you are using the free version, you can't use this rendering path (deferred). Therefore I would suggest using lightmapping for the whole scene.

The blurring is a mipmap effect -- the texture gets compressed for performance enchancement, and I learned that without altering it, the distance isn't really that large and it gets really blurry really fast.

The different shades are the different light sources striking each unique gameobject at different angles. Since the faces of the GO's are apart, each of them is calculated differently. Should it be one long gameobject, the shading would be persistent.