We chose 1280 x 720 resolution to provide a balance between cost and performance. With higher resolution, the price of SPUD would have significantly increased and the SPUD chassis would have to be 20% larger. With lower resolution, higher resolution images, like spreadsheets, could have been difficult to read.
We can reassure our backers that one can read small text without problems. Here are some pictures we took of our Kickstarter prototype. The pictures were limited by the resolution of our camera, but if one compares the SPUD to the Dell laptop in the picture, one could see that SPUD has the same text clarity as the normal laptop screen.
To compare, most other portable projectors on the market today have a native resolution of only 854 x 480 or lower! To provide a better picture of the current projection technology and legibility of small text. Here is one of the best selling projectors on Amazon with really high rating: https://www.amazon.com/S1-200-lumen-support-Short-Throw-LED-Projector/dp/B00I3UTUNW. The projector is advertised as 1080p, but looking at the second bullet point, it actually only has a 854x480 native resolution, while SPUD is 1280x720. However in the customer reviews, no one complained about any legibility/resolution issues.
We understand that some applications like graphical design may require a high resolution screen, but we want to reassure you that SPUD will be able to display a clear image good enough for everyday entertainment and work. We will never deliver a low quality product to our backers, because we understand that your user experience will determine the long term success of our project.