I think Apple will use it mainly (at first, anyway) to pixel-double existing apps that are hard-coded to HVGA. (Which makes me wonder if they use straight pixel doubling, or something like 2×SaI.)

Funny thing is, they'd have probably been content with WVGA like everyone else otherwise -- odd that a loathsome combination of decisions (pathetic resolution, strongly resolution-dependent design) ultimately pushed them to introduce a better screen than everyone else.

But FWIW, I want that screen in a Meego phone so I can cram bigger desktop apps into it. Maybe keep the capacitive touch and add an active digitizer -- I could certainly use cursor-on-hover for that PPI.