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The jpg or bmp figure displays well if I open it outside matlab. But if I implement imread()and image() to display the image in axes on GUI pane, the quality of the image is unsatisfactory. Can anyone help?
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First you need to calculate the width and height of your image in pixels. Then you need to create an axis whose dimensions in pixels exceed that width and height; you can do that by specifying the name/value pair 'Units', 'pixels', and giving the appropriate Position property
image(h) axis image
You might need to play with the axis InnerPosition or Position properties in order to ensure that the portion of the image actually used to draw on is as big as you need.
If your image size exceeds the amount of screen space you can afford, you will not be able to fit the entire image in without decline in quality unless you only show a portion of the image at a time and then either have the user use the "pan" tool or else provide scroll bars such as by using http://www.mathworks.com/matlabcentral/fileexchange/14984-scrollplot-scrollable-xy-axes