At the same smallish screen size, it does compare to 800x480 in my eyes. I do not really care if letters in the book I am reading consist of more pixels, as long as they are smooth and readable. (...) You have just said that it has the same screen size (diagonally), just more pixels. So I am not even sure why anyone would buy that HTC phone.
5800 display is also "very popular", but nobody buys the display alone. If you look at these devices as a whole though, 5800 is a pretty nice, usable, cheap phone with a slim high-def screen. The screen is on the smallish side but it isn't too small for a phone.
Sorry but I fail to see why 800x480 is such a big thing on a 3.2" screen. You do not see all these pixels anyway. (...) 3.2" is not a big screen. It basically renders the benefits of 800x480 resolution useless.