Unless you put the screen right in front of your eyes, that's BS.
I am, because when I'm lying sideways in bed and holding the phone that's what's comfortable. Maybe 15 cm away?
I'm don't want to pull a "you're holding it wrong" here but it really sounds like you're holding the device way too close to your eyes if you're seeing individual pixels on a 326 PPI display.
See above. It's the only way that's comfortable. Also a big reason why I bought a plus phone, because 401 ppi is good enough for me but 326 ppi really isn't.