I can see some element of jagged rendering on fonts and icons, but it is barely noticable even from up close.
Could you please describe to us exactly what you perceive? I doubt very much that the rows between pixels are visible even with pixel bloom.
Back in 1999 I saw a technology demonstrator at IBM's Almaden facility in San Jose where they showed a 200 ppi LCD display. It blew me away. The scientist who worked on it talked about eye strain and how 200 ppi was the 'magic' spot where more thank 75% of the people stopped noticing the strain of making lines out of pixels.
So after unpacking my ipad3 one of the first things I did was to download the Economist app (my favorite btw) and bring up the latest issue on both the ipad1 and ipad3. Side by side the difference is very visible, absolutely can distinguish between the ipad1 and 3 with p < 0.01 :-) More interestingly comparing the ipad3 version to the print magazine its clear that the ipad3 is pretty much identical from my eyes perspective (disclaimer I do wear glasses, no 20/10 vision here).
Now if I could convince folks that send me catalogs to offer an ipad version I'll be in good shape.
It is the old audiophile argument I guess, we'll never know for sure without double blind testing. I would like to give that a trial, sit people at 10" from a black mask screen with a small rectangle in it, display a pure white image at the lowest brightness and see what people report.
http://gizmodo.com/5894094/we-people-an-ipad-2-told-them-it-...
http://www.displaymate.com/iPad_ShootOut_1.htm
.. Apple’s definition of a “Retina Display” is actually for 20/20 Vision (defined as 1 arc-minute visual acuity). However, 20/20 Vision is just the legal definition of “Normal Vision,” which is at the lower end of true normal vision. There are in fact lots of people with much better than 20/20 Vision, and for almost everyone visual acuity is actually limited by blurring due to imperfections of the lens in the eye. The best human vision is about 20/10 Vision, twice as good as 20/20 Vision, and that is what corresponds to the true acuity of the Retina. So to be an actual “True Retina Display” a screen needs at least 573 ppi at 12 inches viewing distance or 458 ppi at 15 inches. The 326 ppi iPhone 4 is a 20/20 Vision display if it is viewed from 10.5 inches or more. ..
Although, I can still perceive the individual pixels if I look close enough. This is what I expected, because I often hold the iPad at about the same distance as an iPhone, and the iPad has still lower res (326 vs 264 ppi). It's not yet this "device that hides its technology in plain sight beyond any human capability and therefore appears magical". But it's very, very beautiful anyway.
Here's hoping that Apple will someday produce a 3x display with 396ppi :-D