Currently, Premiere uses the Lanczos method for intrinsic scale and rotation. Lanczos is an exceptionally high-quality interpolation method which generally yields better results than bicubic, bilinear or nearest neighbor. From reading the forum post, it seems that up-scaling is the real issue here. I suggest looking at the Detail-Preserving Upscale effect in After Effects. It does a really good job and gives you some parameters to tweak to fit your specific content.
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PLEASE ADD THIS ADOBE!
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