The resolution and quality just isn't as good as it should be IMO.
I take it from your JPEGs above you are using a sort of 360 mirror to do this? These are always going to be lower res. You're better using a fisheye and a nodal ninja (or other pano head) and stitching the images which you can do with free software. Here's an example of some I've done for clients using this set-up on a Canon DSLR:
Margam Abbey
Inside a sandwich shop
Inside a fireworks shop
Even with Google coming into this area there is still scope for this service for those who want better quality 360s for their websites.
Edit - and just a personal thing, but I hate when auto rotate is set to "on"
Impressive!!!!
Can you drop me a pm with more information, the setup, the software etc?