Millions of people read just fine on the ipad 2 before the 3 came along
I have to state that neither I nor my wife see no difference between our iPad1 and iPad3 when looking at pictures or reading websites. Nothing except the icons on the home screen are a tad crisper. We put tons of 5MP and 14MP pix on both devices and saw no difference...zoomed in and out too. We asked a few family folk and they saw no difference.
Now, it could be that human's eyes, WHEN VIEWING A SCREEN, rarely notice a difference above 1024x768. I dunno. But nobody in our family wears glasses, we have great vision, and we can't tell the difference in regards to high quality photos. As for reading websites or email? We don't see a difference there either...but we're also not reading hours at a time...maybe 5 mins here, 10 mins there. It's welcome to have such a high resolution display...but really no need for people to run out and buy a 3 if they already own a 2 (for screen quality reasons).