ehh not much technical i am in these, but i tested same Bluray movie on my system GTX 1060 nvidia and powerdvd 16 and on my friends bluray player (sony and lg price range 9-12K). And belive me the picture quality difference was quite noticeable. Bluray player PQ was not sharp and blurry as compared to PC.
GTX-1060 blurry? That is impossible. There is something wrong in your setup.
Like Sam, I have a 4 year old HTPC. I have recently added a Nvidia 710 based card. The video is unbelievably sharp and pleasing. I watched just a few movies, but it beats most mid-range Blu-ray players hollow. It was like a new lease of life to my HT setup.
Cheers