When I have a large smart object, and then shrink it down, I often get some extreme sharpening. And while I understand that shrinking down an image may require some sharpening, photoshop can go a little overboard.
Here, for example, is a large 1:1 smart object on the right and the result when shrunk down on the left.
It also happens in Save For Web output:
How can I control this sharpening and still maintain the Smart Object link?