It's a smaller physical size, but the same pixel count.
Yes the pixel count is quadrupled but not the resolution.
The pixel count of the display is 480 x 272.
Obviously camera technology will continue to improve, so pixel count is certainly going to increase.
They will notice the pixel count, the color, size and "features".
I am sure they'll push for pixel count being equal to or better then the competition.
That bigger sensor will get a better picture in lower light, regardless of the pixel count.
The higher the pixel count, the more the image can be enlarged.
However since no broadcasts use this pixel count, such displays always scale anything they show.
It doesn't seem like much, but when doing web development or managing photos, every pixel counts.