An electronic device may include a finger biometric sensor that may include an array of electric field sensing pixels and image data output circuitry coupled thereto. The electronic device may also include a dielectric layer over the array of electric field sensing pixels and causing electric field diffusion so that the image data output circuitry generates image data corresponding to a blurred finger image. The electronic device may also include deblurring circuitry coupled to the image data output circuitry and capable of processing the image data to produce processed image data representative of a deblurred finger image.