I'd go even further. Because of this focus on amount of pixels rather than quality, we're not getting quality content. Modern mobile GPUs could probably push PS3/XB360 quality graphics at 480-720p. We could have had a controller-like phone holder and play previous gen console games on the phones if not for this fetish.
Instead all you get is crap like angry birds, flappy bird and so on. Deus Ex game mobile game was so terrible, it wasn't even funny, and it really, REALLY tried to push the envelope as much as possible with the format - it looked worse than most PS2 games. It's essentially impossible to make a good looking game on mobile today, because if you're going to support the native resolution, you have to make graphics quality awful to make mobile GPU able to play it.
It would be awesome if 480p or 720p would the most popular resolution, GPUs would continue to grow in power and we would have xb360/PS3 games ported to phones because there would actually be enough power to run them without massive changes.