6.25 kHz of bandwidth does not convey the human voice as well as analog with more bandwidth. Additionally, some inexpensive DMR radios have poor transmit audio which makes it more difficult to understand. The best sounding DMR radio I have ever heard is a Kenwood 5300 series. It costs around $1000, or was it $3000, I forget.
1. Yes, digital modes, DMR being one of them, typically use less bandwidth for efficiency and or to also pass data with the audio.
2. The settings that can be changed would be to use a different digital mode that sounds better to you. I prefer P25 and Yaesu Fusion (C4FM).
3. All DMR repeaters are not the same, nor is the ancillary equipment installed with it. Additionally, the skillset of the installers is not the same.
Another way to fix it is for everyone to avoid using inexpensive DMR radios, or avoid talking to someone until they purchase a better radio. These two probably will not happen. Around here DMR was very popular a few years ago. Now it is very quiet. Of all the DMR repeaters near me, I only hear traffic about twice a week. (In other places it could be quite busy)