I certainly feel resolutions need to be higher...of course it is all relative...you can't see/use a 1600x1200 resolution on a 9" display other than for playing a movie and seeing the wonderful color depth.

It's a constant balance among small devices of the screen size and the resolution.
My iPhone 3GS is great but I wish the browser would allow me to make it full screen (like F11 in Internet Explorer) or even make more use of the physical dimensions of the device (the bottom 3/4 inch is not the touchscreen).
I have a feeling sometime this year I will be getting rid of my Dell Mini9 for a new 10.x or 11.x size display netbook...simply for larger screen as I cannot work/play very long on the 9". Great little Dell Mini9, however!