I had to return my iPad 2, due to the screen resolution.
I use my iPhone 4 to surf the web, email, txt and as an e-reader. When I bought the iPad, I was hoping it would supplant the iPhone in those duties.
Unfortunately, after a weeks use, I was unable to get used to the pixelation and had to return the device to Apple. For me, the greatest problem with the resolution is its inability to render text as smoothly as the retina display.
If you are able to use it without it bothering you, great. Just know that there are us out there that find it unacceptable.