I so totally disagree.

It's not that somehow, magically, you'll be able to see 10 times more stuff on the screen -- your eye has limits as to how tiny the print can be. It's that the print on the smaller side of things is that much sharper and easier on your eyes, and is generally more readable, letting you handle a greater range of print with less eyestrain.
I find myself using WM2003SE's VGA mode by default most of the time. Things like games, documents, etc. are incredibly sharp. eBooks are fantastic. No, I'm not going to view 8.5"x11" PDFs in full-page view, and I don't see how that could be readable on a 4" screen even with higher resolutions... but reflow mode works extremely well, especially in RepliGo. SE_VGA is useful when applications aren't fully SE compatible or make things "too large".
And hickssp, you don't need a larger screen per se. By default, Second Edition increases the size of all the print so that it'd be very readable on a 3.6" screen. Take a look at this
small article I wrote up to get an idea of what goes on and what the alternatives are. As to whether it's necessary, that's really up to you.

I carry both 240x320 and a 480x640-based Pocket PCs around, and they're certainly both very functional.
--janak