One of Apple's claimed breakthrough features for iPhone 4 is its "Retina display" running at 960 x 640 pixels at 326 pixels-per-inch, offering improved viewing by making individual pixels undistinguishable at typical viewing distances.
It's mostly a breakthrough in marketing, since that resolution was done before. (Note that other features, such as IPS or glass-bonding have no effect on resolution.)
Individual pixels are not seen on most WVGA+ phone displays at "typical viewing distances".
For instance, the so-called "retina distance" for the iPhone 4 is about 11". The distance for a Nexus-1 is about 14". No doubt we'll soon see one that works at 9", but it won't make the iPhone or others suddenly obsolete.
Btw, the retinal distance for an iPad is about 27", and people like its display just fine.