There's always a limit to the workload hardware can handle. I doubt Apple would have done performance testing for every app in the App Store, let alone modifying every OpenGL ES app to check how it runs at 960x640 without even having the source.Oh, I doubt they would have updated (or they'd have used a better GPU) if the SGX535 couldn't handle everything at 960x640 and 1024x768, they would've thoroughly checked it, benchmarked it, tested it, to make sure it can handle it.
Despite what some might say, Apple do have competition. And they identified games as one of the main attractions of iOS devices.I just can't see it happening, that is, Apple, using a GPU which will consume about twice the power of the previous to get 4x performance rather than just 2x.
Then there's OpenCL. And it wouldn't consume twice the power processing the same workload.