It's not a fault, it's just that the resolving power of your eyes is not sufficient to separate the stripes. There is a wealth of information on the subject here
http://www.last-word.com/content_handling/show_tree/tree_id/1469.html
and in last week's New Scientist (27th March 2010).
Like all engineering projects, eye 'design' has been arrived at with compromises. Evolution has given you the eye that benefitted your ancestors most. A falcon's eye might resolve the stripes in the cardigan but cost the falcon in other ways. Evolution has also given you a brain that could invent binoculars.