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-...
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.