Joking about what? And yes, it's reportedly 480 x 272 - they made it widescreen by giving it fewer pixels.
This could be a real annoyance. The iPhone screen is just wide enough for a reasonable keyboard in portrait, and in landscape there is precious little room for text.
It's the smallest dimension that matters, and it's only films in such widescreen.
Imagine sudoku.
I can see that they wouldn't want to just copy iPhone specs, but making the screen smaller is not an improvement.