I agree completely. Everyone can agree the display is not retina, and the Kindle/Nexus both have sharper displays. If you want the sharpest display on the market buy a Kindle or Nexus. I don't think any apple fanboy will tell you otherwise. This will be my first personal tablet, (my girlfriend has an iPad 2), but I'm already well developed into Apple's ecosystem, and Apple offers more dedicated tablet apps, a lighter tablet, and a high quality build. I also know my Apple products will work for years to come and will still receive the latest updates. (Problems I have had with Android manufactures in the past). These are all things that matter to me. I'm sure the 163 PPI will be just fine. It's not retina, but who really was counting pixels before Apple started making it a competition. Buy what you want, because at the end of the day who cares? Competition is good for all of us.
That depends entirely on what you're choosing to look at. In the 7.7-8" range, you don't see other products with much higher pixel densities. The best models out there are 1280x800, which isn't really a significant difference.
Based on the track record of other iPads, it's extremely unlikely that the iPad mini's display will be inferior in any measure of quality. It will have a lower resolution, but unless that's your only criterion, your statement doesn't add up.
They haven't. The iPad mini's display contains a number of brand-new technologies, sharing most of it with the iPhone 5's LCD. The only thing that's identical to the iPhone 3G is the pixel density, which has nothing at all to do with its technological "level".
Just as predictably as minions of the other guys are missing the forest for the trees by focusing on one raw number instead of a holistic view.