Clarity

JPEG or RAW - Open image - Create duplicate layer (so you can mess around) then - FILTER -> BLUR - then try GAUSSIAN, SMART BLUR or I even prefer SURFACE BLUR as it hold the edges a little better

?

Yeah, similar to that, what can look nice is if you make your duplicate layer very blurred, then reduce the opacity to gradually reveal the sharp original.

In Photoshop Elements 9 in the Raw Converter you can use the Clarity Slider in both positive and negative directions. Negative Clarity gives you blur. I have used Negative Clarity in some of my photos.

Well, it's not actually blur, is it. If you zoom in and look closely at lines while you move the slider, they don't get smeared the way Gaussian blur would, for instance.

It's more like reduced contrast, rather than actual blur, which is why I'd be interested to know what the difference is between that and the contrast slider. The two aren't the same, but I can't work out what the actual difference is.