Craig Grannell , partly because no one can explain how this is supposed to work:

Arguing everything would be fine if a 7.85-inch iPad arrived with a 163 PPI screen is nonsensical. At best, existing apps would be fiddlier to use, causing more hit errors, and the text within them would be smaller and therefore harder to read.

But arguing that you can just shrink the screen down and it'll all be peachy is exactly what people are doing. Take for example:

By using the same screen resolution as the iPad 2, Apple could allow current applications written for the iPad to run on a new, smaller device without any modifications.

Except to your fingers, which you would have to file into points. Easy!