I'm pretty sure the answer is in the mobile app scaling part of stencylpedia but its just the way things are worded that are making it difficult to process...at least for me that is. I'm gonna keep trying stuff let me know if you get anywhere!
I got it, I have been doing it wrong from day 1, when you start making the game from the dashboard and click the blank game icon, it opens a set of templates for games, there is another tab which says mobile & web, when you open that game and import assets anywhere there are two options to import ipad or retina; when imported with retina selected, the assets are downscaled to half their size automatically (tried myself) and don't degrade upon scaling. So this is it all about scaling XD