Would a telescope travelling at close to the speed of light be able to make better images because the object would be nearer (Lorentz contraction)? The Lorentz contraction means that when you fly toward (or away from) a distant object, that object becomes less distant in your frame of reference. So if a telescope were flying towards a distant galaxy, say, at close to the speed of light, c, the galaxy would be nearer, and if the speed was very close to c, it would be much nearer, e.g. one tenth as far. I think that would mean that the galaxy would subtend about ten times the angle, too. I'm thinking that would be a form of (ten times) magnification.
 A: The answer to your question is not necessarily. For the sake of illustration, let's suppose that the telescope is momentarily passing the Earth...
Yes, the galaxy is nearer in the telescope's frame of reference than it is in the Earth's frame. But that is a consequence of the relativity of simultaneity- in the telescope frame the position of the galaxy 'now' is at a later point in time than it is 'now' in the Earth frame, which is why it is nearer. However, that is irrelevant, because you have to allow for the time it takes for the light from the galaxy to reach you- what the telescope is seeing is not the galaxy where is it 'now' but the galaxy where it used to be at a much earlier point in time (when it was further away).
You should also bear in mind that any images the telescope attempted to capture would be affected by blue-shifting of all the radiation from the galaxy and by the fact that the galaxy is not a point object, so you would be approaching different parts of it at different velocities, which would cause distortion.
