Turn the Position on-screen controls on, you'll see bezier handles when you select either Keyframe, they both set to smooth, change them to linear.
I'm going to say I don't think that Elf's face is all that clear in the original. First, don't judge quality when the video is playing, judge when it's on one single frame. And to clear that face up, you want a Sharpen filter, which doesn't work as easily with video as it does with stills. Open your PNG file into Pixelmator Pro (or whatever) and use a Sharpen brush over the elf's fact, not much, just a tad. Cause I'm going to state right now that in the original graphic, his face is not as sharp as the rest of the image.