I am a videophile.
I agree the screen was much lower quality than I had expected. Comparing it to an iphone 1 isn't a stretch.
However the image may look like garbage when in the home screen and looking at menus, this issue does all but go away once you are immersed in a VR game. You BARELY notice the issue when you are active in a game and REALLY notice it when you are in menus and such.
But for a $600 "high-end" device the screen resolution is a joke and one of it's worse qualities. They spent a lot of time getting a lot of things right, I wish they would have done so with the screen resolution. It's embarassing that this is the released version.
I'm not going to return mine, but I am annoyed.
The screens aren't low resolution (they're higher resolution and far higher in pixel density than the 1080p monitor I'm typing this on), the reason for the lower apparent pixel density is because the screens subtend a much larger angle than a conventional monitor. When sitting at my PC, my monitor takes up only a fairly small portion of my field of view.
The main reason the resolution can't yet be higher is there isn't graphics card hardware capable of that level of performance. VR is very expensive - not just because you have to render each eye, but your render target needs to be about 30% larger than the actual screen since the image as sent to the Rift must be distorted to compensate for the lenses. Plus, going for 90 Hz requires a lot, and trust me, as a DK2 user - judder is vastly, vastly worse than screendoor, even the higher levels of screendoor that the DK2 had. Even dropping a couple FPS down in the DK2 was a horrible experience.