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Sounds like you need glasses.

I guess its possible....But I'm 32 years old and I've had 20/20 in both eyes all my life. I can read the text and everything on the higher resolution just fine, its not hard to see. Just hurts my eyes, pretty sure I don't need glasses though, thanks for your concern.
 
Actually I like this..

The Problem is that the resolution is so massively large that when trying to do any kind of Coding the Text is so small I have to get closer to view it.

I have found using the Command + function helps a lot, but some apps dont support the zoom features.

I may look into the DPI settings as well. But I agree with the original complaint, it's weird to suddenly have to squint at smaller text due to ginormous resolution.

I am starting to think 1 21" iMac + 2nd monitor for dual screens would be better.

Welp,...

I found I can increase the font size on the coding applications I was using. Everything else is zoomable, re-adjustable to fit my needs. It still is the largest resolution I've ever used, but i'm used to it now.

At this point, I'm glad I stayed with a 27" iMac. the extra space is nice after trying to do the same work on another smaller size screen recently.


I guess it took me 1 month to get used to these settings, as apposed to the regular 2 weeks. So, I'd like to 'retract' my original post. I'm in love with the 27' iMac now :D
 
In short, you can't change the font sizes of applications in Mac OS X, aside from your usual text sizes. Aside from moving the display closer to you (causing you neck problems), your best (cheapest) bet is to buy a second display, like a 27" 1080p model, and use that as your main display instead. A 21.5 inch iMac is another option (or a Mac mini with a suitable display, depending on your power requirements).
 
If you use Windows 7 (and I assume Windows 8), you can select a smaller resolution without stretching the image, thus utilizing a smaller portion of the screen. It's also easier to change font sizes in Windows. Still, I really can't understand your problem. Get a different chair, or a different desk. 27'' iMac is brilliant! :)
 
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