> Even in its original release it supported different PPIs for different displays
Yes and no.
X11 screens could have different resolutions, color modes and pixel density, but windows could not span over multiple screens, or moved from one screen to another. The only way the user/the application could move window to a different screen would be to open a new connection to the screen (denoted by that familiar DISPLAY:0.x environment variable) and recreate all the resources there.
There was exactly one application that was capable of doing that at runtime (XEmacs). For all the others it meant restarting the application with a new DISPLAY env var.
Hence Xinerama. It joined all the different physical displays into a single screen, which allowed to move windows around, but came with limitations, like the same color modes or DPI for all displays -- since it was single screen logically.