The people that have the benefit of using the technology, no matter whether it's Android or Apple. Competition is driving manufacturers to produce higher-spec devices in the hopes of winning customers. The iPhone languished at 320×480 for a long while (and really, I'll betcha Apple would have loved to keep it there, as a lower-resolution display takes less battery power to drive, and produces higher framerates in games, etc), and then all of a sudden, Android devices with shiny high-res displays started showing up, and Apple was compelled to counter with its own offering.
No doubt. Perhaps the wrong choice of word, but what I meant is that Apple wasn't pushing higher-res displays, despite advancements in display technology, until their competition did. They were content to let the iPhone stay at a relatively low resolution until it became a point that they had to compete on.
I disagree. If it's Jobs driving things (and he is), he'd be pushing for as high a resolution as they could afford in their power and dollar budgets; he's always been a typophile. It's only at this point that it has become generally feasible. (Yes, Android beat them by a few months, but such are the technology cycles. Apple started the iPhone 4 development 18 months ago, according to what was said at WWDC.)