Exactly. Everyone familliar with basics of optic, will know, that even N900's screen, put as close to eyes as possible to keep focus and borders into angle of view, result in panoramic picture with indistinguishable pixels.

To visualize it, lets imagine room with walls, ceilling, and floor absorbing 100% light, and 2 screens - one being 40'' 1080p, far away from viewer, and another one being N900 screen, close to eyes - both with same aspect ratio, colors, quality, etc. Viewer, without any other objets, helping to measure distance (floor, walls), and without moving head (to measure by angles) wouldn't be able to tell, which screen is close and small, or which one is big and far away.

Putting more pixels on square inch is just useless. Sure, at least 1024 width helps during browsing, but it's rather due to stupid designs of nowadays websites...