Here's how my phone viewed it:
I will concede to that argument. I can see the clumping on the finest lines and just barely on the next ones up (I can see a bit of grey in between a few of them at that level). But is this noticeable when viewing HD content? That is what is being discussed really. I am not arguing that the resolution is not actually HD standard definition. Numbers are numbers. 1136 x 640 does not equal 1280 x 720 obviously.
The ability to perceive this difference in an actual film is what I'm arguing. At this screen size and at the distance that I would be watching a movie, I argue that you cannot see the difference.
Your test is also a little skewed anyway. You're viewing it on a 5.5" screen or however big the note 2 is. I viewed the picture on my laptop first and the image initially wasn't at full res which gave the same impression as when I viewed it at full res on my phone. But when zoomed in to the actual res on my computer the illusion was not there.
I still throw out the argument that watching movies on a 4-5" device is not normal anyway. YouTube video's are fine, but I have no desire to watch a full length movie on my phone.
Here's some screen shots of videos on my phone.
First one is a 1080p trailer for Dark Knight Rises (downloaded from YouTube so not a rip from a Blu Ray)
The rest are from a 720p video also downloaded from YouTube.
I just want to know if you see these visible artifacts in my screen grabs.