Check this out:

http://www.i4u.com/article2157.html

That's pretty cool...368 ppi!!

Now we just need to convince a manufacturer to develop something in the 7" range so we can still use our standard projection lens. All we really need to get to HD at 720p is about 230 ppi with a 7" diagonal (5:4 ratio, 1280*1024).

Looks like the technology is getting there, just need to convince a manufacturer that there is a demand for the smaller panels.

Unfortunatly, I just read an article about the 7" screens used in Cars / DVD systems are not selling very well and they are having to cut costs. The big market it seems is the Cell Phone.

well, IMHO - one reason that i think they dont sell as well for the community that will really use them is that MOST 7" screens for sale are of HORRIBLE resolution. There are only like 2-3 manuf. that are making better than video res LCDs at that size. Check our www.mp3car.com to verify