>> You haven't seen an iPhone with its 326 ppi LCD then? ;-)
>
> No. But then, I haven't seen *most* of the phones on the market, so...
>
> Basically, my question is this: If the technology exists to make a high
> resolution LCD, then why is the iPhone the only device on the market to
> do this?

Cost, and maybe power consumption/battery life too.  A lot of smart 
phones with touch screens are up around 250 ppi, but I think the iPhone 
is the only one at the moment over 300.  As usual with almost every 
product though, the technology will work its way down to the cheaper 
handsets over the next few years.  Do you remember when only the 
high-end phones had cameras in them?

> My computer monitor at home is LCD, and it uses dithering to display the
> full 2^24 colours. (Quite irritating, actually...) But sure, the
> expensive ones can do it properly. (And even my monitor can manage more
> than just black and white without any dithering.)

It's unusual to find even cheap monitors now that don't do proper 24bit. 
  It used to be just because it was cheaper to only put a few thousand 
6-bit DACs on the panel rather than 8-bit ones, but I guess the 
difference has become negligible now.

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