With a large lens opening, light can come from a single point on say a coke can and enter the camera in trillion different places / left / right / up /down and all in between. All those rays of light are coming from a single tiny place and striking the back of the eye in all the places possible. And you get a fuzzy image.
Now shrink the size of the opening to a mere pinhole and you also shrink the available up/down/left /right space random images of that point on the can are coming into the eye’s retina surface.
This is the same as what happens when you use a camera lens and make the aperture smaller.
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