Like I said, it doesn't affect readability for the vast majority of people. It does, however, affect it for me. And, depending on your eye sight, you can see the pixels on a display such as the note, from a LOT farther away than 12-13cm. I can see the pixels on my friends galaxy s3 (same basic sub pixel arrangement as the note 1 but even higher DPI) from normal operating distance. It just depends on your eyesight. I have incredibly good macro vision but my far vision is pathetic.
Here is a demonstration of fonts on a pentile versus striped screen:
This clearly shows you the artifacting I mentioned earlier as well as the lumpy blurriness you get out of a pentile screen. This argument will be pretty moot in the not too distant future, though, when the pixel densities keep getting pushed up. At least this is my hope...
For me, reading on most pentile arrangements is like trying to read on old qVGA or lower resolution PDAs. The pixel density on AMOLED displays might be fairly high, but the subpixels themselves are smaller than on, say, and sLCD display, and has more air gap between them and their sibling pixels. So, for me, its like looking at a awkward grid of diamond patterns.
Anyways, I'm not trying to dis the note 1... though I suppose my use of "crappier pentile arrangements" was poorly chosen, lol.