View > Display Settings > High Quality (or right click the work area and choose) - Does that help?
"Draw" and PS don't often go together - what is the effective resolution of the linked PS file in InDesign's Links Panel?
It is already set to high quality. Actual ppi is 600, effective ppi is 1043. It's not big either. I drew it larger than in would actually be and scaled it down.
Waht you see on screen in ID is a jpeg preview, not the actual pixels of the photoshop file, and that's a pretty large file, so it probably has been down-sampled quite bit in the preview. How does it look and print in PDF exported from ID?