Thanks Ashley for the clarification.
Also, it seems that when scaling up a small square sprite (if its just a solid square) there is absolutely no degradation in quality or blurring of the sprite. Additionally, I can even make simple (and big) shapes from it using the mesh feature which all have crisp edges even when using a tiny image.
So win win.
That's a corner case(literally?), and mesh is essentially the same as vector.
Blurring happens when you have a texture with detail. If you round the corners on your square for example.
Note if you switch the sampling to nearest and you're using pixel art most of the artwork will also scale infinity.
... as long as its square. If you change its angle to anything besides 90° artifacts will appear.