Is it also the case that all transcendental numbers have approximations of unbounded quality? Or only that Liouville numbers have approximations of unbounded quality, and therefore cannot be algebraic?
Liouville numbers have approximations of unbounded quality and thus cannot be algebraic. "Most" transcendental numbers only have finitely many approximations of quality higher than 2 + epsilon for any epsilon.
This was how the first known transcendental numbers -- the Liouville numbers -- were constructed: They have approximations with unbounded quality, thus they cannot be algebraic. In practice, however, this isn't a very useful method: "Almost all" transcendental numbers also obey the Thue–Siegel–Roth theorem.