Surprised that they don't think it will be retina density. For a 7.85" screen that works out to about 170ppi (assuming 1024x768). Seems not very competitive.
If they elongate the screen to 1200x768 (runs current iPad apps letterboxed) then that would push it closer to 200ppi. That would be a little better, and would be a better aspect ratio for video. However it is getting close to where fingertips will be too large.