And Nokia could do the same thing. Both the on-chip LCD controller and the PowerVR chip do not technically support the 800x480 LCD used on the device. Nokia should not be held liable for every possible use of the hardware and had to make the decision as to what hardware they would and would not support in the device. So unless you are arguing that they should have also used a 640x480 screen I don't see what you are getting at.

I have some complaints about keeping some random portions of the stack closed on an "open" platform but that is not the argument you are making.

Choosing not to develop a product to the fullest != intentionally crippling a product.