It's almost like it's just a cheaper panel (than the iPad 2) all around.
Don't make crap up.
Side-by-side with iPad 2. In no way is it worse than an iPad 2.
Gruber was right when he called it 3GS quality.
Again, don't make crap up:
"The actual iPad Mini display is
not terrible. Its exactly what you think: it feels like an iPhone 3GS display cut to iPad size, including the fact that the pixels seem deeper from the surface of the glass. (It does seem brighter and more vibrant than a 3GS display, perhaps because it uses an IPS panel.) And after a week of using it as my main iPad, the individually discernible pixels are no longer jarring to my eyes. The non-retina resolution is the one and only significant complaint I have with the iPad Mini, and its an issue that is only apparent to those of us who already own a nearly-new iPad.
For anyone else those who own an older iPad 1 or 2, and those who have yet to buy their first iPad the iPad Minis display will garner no complaints. I prefer the Mini over the full-size iPad in every single regard other than display resolution, and though I (and many of you) obsess over display resolution, its not an issue in the mass market."