[Yaggo]

Indeed. Any medium (regardless of dot size) will appear razor sharp when viewed from far enough (so that one can't see individual dots).

Of course, if there are enough dots in particular physical area, the human eye is incapable to see a single dot from the closest possible focusing distance. This is what I would call a "retinal diplay". Not sure if 326 DPI is enough for that, but is surely enough for the iPhone's screen.

http://en.wikipedia.org/wiki/Optimum_HDTV_viewing_distance