Well, I'll say this...I'm not sure what the "native display" is for Honeycomb, GB, or Froyo, but I guarantee you that there are phones/tablets using something else with no pixelation or other negative side effects. For example, Moto's seem to use an odd screen resolution (the X uses 480x854) and I can't tell if there's anything "wrong" with it. I expect the same will be true with ICS...it will support whatever resolution you throw at it.