It's hard to think people can't tell the difference, but many don't. Photos and art apps are just crazy good, it's like your really painting, and thumbnail pictures in iPhoto or the photo app are so detailed and crispy! When looking at a real sharp photo, it looks just like a glossy 8x10, the color saturation is so much better.
I actually took a few pictures of a dollar and some change on a table made sure it was to scale and absolutely looked perfect. I Placed the ipad down on the same table and showed to people not really up on technology. I told them the new iPad could be translucent, even gave them a magnifier, and they looked and for a moment thought they were looking through glass... seriously the screen is just that crazy good.
But when showed both iPad 2 and the new one side by side, I had to point out the detail, which amazed me, but then again some of these are the same people who still watch TV on the none high def channels even though they get the high def ones and have a high def TV!
But I understand now, it's mostly that they really don't care, even after they know. And maybe I care a little too much about these things.