I thought the whole idea was to reuse the N900's external shell. The hardware (CPU, RAM, IR LEDs...) is being replaced anyway, so why not other bits, like the screen? I can see immi's point.

Having said that, I see literally zero point in cramming more pixels in a 3.5" screen. 800x480 is just fine. And whatever you do, please, please, please do NOT go down the capacitive route.