^Problem is that my NOTE has the same resolution as lets say the SG Tab. The tablet optimized App will fit pixel-for-pixel perfectly on my phone, but the ui elements would be too small and cramped.

The same goes the other way around. Something optimized for the NOTE will be pixel-for-pixel fitted into the SG Tab, but all the ui elements would be stretched and the potential of the extra space will be wasted.

That's why Android uses a dpi solution. Problem is, the whole thing is made into one mega package (.apk) so that after its downloaded, the Android Installer chooses the right configuration. This wastes storage, internet download/server traffic and is a "messy" situation. But it works.

The reason there's a lot of problems with this is because its completely reliant on the developers to put in the effort and "re-write" their app so that it supports other dpi's. And the reason developers haven't put in the effort is easy: there's no incentive. Google needs to start placing tags (HD ?) to signify its available for tablets. And Google probably should allow the developers to create the differed dpi Apps in separate .apk's but launched them under one title. So if I searched for "Temple Run" I would only get one result, and in the information panel it would clearly show the App is available for tablets. Next part, Google Market (Play ?) should automatically detect which (dpi) version is necessary for the device you are downloading it to, and it should fetch the correct version for you...keeping the download rates smaller, less stress on the server, quicker installation, and a lot smoother experience. This makes the problem reliant on Google, meaning developers won't hesitate as much.

For iOS it doesn't matter as much, since Apple has strict regulations anyways, and the developers don't expect much flexibility. Apple has streamlined their developer kits aimed at the iPhone and iPad independently, but sharing everything in common. Apple's created a new ecosystem, and alot of incentive for developers to target the iPad. Google should copy Apple's business model in terms of this.