The focus of the lens may be some of the issue with the closer focus perhaps the choice here because the accidents we have are by their nature very close to us indeed. What is further out is less important to our needs and is thus not optimised. General direction and similar pieces of information could be useful and are obviously captured but reading the number plate at “300 yards” (I am just using a figure to illustrate rather than any set distance) is probably not of great concern. I would assume the police or traffic cameras would be concerned with detail even further out than our dashcams and so may have better image quality at range and a price tag to match that need.
Also see my above post about fps and blurry images Dashcam review