>>283250204
I've three things to say to that. First, the resolution as it appears is trash and there's no stepping around that. Everything else on the model, being single color, is sharp and as distinct as the rendering of the game, meanwhile that small emblem is upscaled to such grotesque proportions because of its actual size on the model being larger than what it is on the texture and that poor resolution being broadcast for everyone to see. That's pretty important on the typical, day-to-day basis where I'm not applying animated emissive tattoos to my character's cloak. 
Two, the lighting is already fucked because that's not where it's supposed to be on the model. As you may have seen, it's only half the emblem; it's supposed to be mirrored, but so is the rest of the damn cape, and it's not at the edge where it would be mirrored. When I apply certain shaders or overlays are applied on me by outside effects, there's a visible square in the center of the cape because of the UV map being misaligned by no fault of my own but by the author's own making because he was the one who made the emblem have its own island rather than be flush with the rest of the cape's UV. I haven't had the chance to examine my cape as thoroughly in real time because it's pretty far behind my back and that's very inconvenient to take pictures of, but honestly I'll eat a spot on my back having mediocre lighting if it doesn't immediately look like trash with or without good lighting.
Lastly, if he was going to go through the effort of making the emblem a separate island from the rest of the cape, the last he could have done was move it to the side and make it bigger so it could stand up to a more critical eye, such as VR users planting their faces against things and saying "wow these textures are bad", but also to make use of the huge portions of the texture that go completely unused.