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It's being an IPS screen that makes the iPad so nice. Its just much clearer than other LCD screens--just like those big IPS MAC monitors.
Also, resolution isn't tied to font size. It is on a PC etc. for the icons and dialog box fonts as you don't have a lot of options there--just regular or large font for the most part, and large can still be a tad small on high resolution settings.
But the default font sizes for icons etc. on the iPad is pretty big, and of course in e-book apps you can increase font size yourself easily etc.
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