I've heard that SO many times. Having the 14" screen still has some benefits over having a 12" screen!!! I'm so sick of all these 12" ibook owners just clowning on the 14" ibook just because they didn't want to pay the extra money!!

Haha, jk. Portability is definitely a key factor in choosing the 12" for some people. And okay, okay, it might not be as sharp, but the images displayed are still larger! Just because the resolution is identical, it doesn't mean that having a larger screen isn't beneficial. For instance, having a movie at the "maximum" setting on the 12" will probably be comparable to having a movie at the "normal" setting on the 14". PURELY in terms of physical size. Granted, the 14" will probably display an image that is not as sharp. For me, it means not having to lean my head toward the screen to watch a movie. Also, I am able to make the dock a much smaller size to maximize real estate.
And yes, I own a 14" ibook. Mainly because I wanted a bigger screen than the 12" ibook, but couldn't afford the 15" PB. I need a bigger screen, regardless of the resolution...for digital painting purposes. It's just easier to see on a bigger screen.