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Wouldn't something like this cause extreme eye-strain and/or headaches? Even if you could make sense of the display...

You don't have to focus on a screen that's that close to your eye. The pixels are so small and so close to your eye that the light doesn't disperse much before it hits your retina. That means the dots of light will seem to be in focus no matter how you focus your eyes.

That is not true; please be careful to do research before posting so you don't spread misinformation.

If a light source is diffuse/omnidirectional, then it will be blurrier the farther it is from the distance your eye is focusing on.

Only if the light is a ray (a collimated beam with very little spread and very small diameter), such as the ray produced by a laser, then it will be in focus regardless of the distance at which it is produced.

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