1280x800 on 7" is a very high resolution, it will make everything look tiny. I think what parent was referring to is that the OS doesn't scale the text and UI elements, like the new iPad does. The new iPad has a 2048x1536 screen, but the UI looks like it's 1024x768, it's simply twice as sharp.

I have very bad eyesight, looking at the tiny UI in the screenshots on Google's tablet page made me cringe. I wouldn't be able to work with a tablet like that. I had the same problem with the MacBook Air 11", which has a resolution of 1366x768.