Photographing screens is pretty meaningless. If you look at the palm holding the phone in the original post, it is much better visible on the 4 picture than on 3GS, with papillary lines and everything. How can someone claim these pictures allow you to compare the quality of displays is beyond me.

I think all the web commentary about whether the pixels are visible or not are missing the point. The point is that thinks that were not readable (or resolvable) now are. For instance on the NYT page, on the 3gs screenshot only the main headlines are readable. On the 4 phone, everything is. That's a huge usability improvement. Additionally a number of the stylist elements on the iphone don't look that great at lower resolution but amazing at the higher one. The obvious one is the inset text effect used for the browser header (i.e. the white inset on text),it almost looks like ghosting on the 3gs whilst on the 4 it looks like a crisp inset. The same goes for the inset icons at the bottom. I have to look hard to see pixels on my 3gs; things looking less pixely isn't the news, things being more resolvable is.