I guess I'm not sure I get this concern. Developers won't have to create an entirely new format, if the resolution is 1024x768. It's still going to be 72px icons, and all of the graphics would be the same. So, there really isn't an issue with this.
Of course, if we're talking about different resolutions (like the retina iPad idea that people have spoken about), then developers would find it a hard pill to swallow.
I see this more as a MBA 11" debate. Some people will downplay its usefulness and call it names, etc, but at the end of the day, it's just another form factor. No harm done.
EDIT: Come to think of it, when I launch the iPad simulator on my xCode, it is a smaller form factor, and yes I have to admit I don't really like it. ;-)