When Steve Jobs revealed the new iPhone4 he said it has higher resolution than older models; the pixels are smaller, making the display look smoother. At 12 inches from the eye, Jobs claims, the pixels on the iPhone4 are so small that they exceed your eye's ability to detect them. Pictures at that resolution are smooth and continuous, and not pixellated.
However, a display expert has disputed this. Raymond Soneira of DisplayMate Industries, was quoted both in that Wired article and on PC Mag (and other sites as well) saying that the claims by Jobs are something of an exaggeration: "It is reasonably close to being a perfect display, but Steve pushed it a little too far".
This prompted the Wired article editors to give it the headline "iPhone 4's 'Retina' Display Claims Are False Marketing". As it happens, I know a thing or two about resolution as well, having spent a few years calibrating a camera on board Hubble. Having looked this over, I disagree with the Wired headline strongly, and mildly disagree with Soneira. Here's why.