Small high resolution displays with Windows

I have some time to kill so I thought I'd do another post I've been meaning to write.

The other day, I was at the Sony Style store here in Philly (which is, by the way, a beautiful store and Sony really makes great products). I was playing around with the Vaio Z and, as much as I think it's an awesome laptop, I was struck by how tiny everything on the display looked.

Now this is of course because it has a 13.1 inch screen and a resolution of 1920 X 1080. While hi-res displays are great for many reasons, everything on the screen was so small I could barely read the text. Even the Taskbar seemed absurdly tiny.

So I was wondering if anybody else has experienced this and what you guys think. I feel like with Windows 8, MS will need to make some serous changes for how different resolutions appear because I can't begin to imagine how tiny things would be on an even smaller, higher resolution display (think New iPad), especially in the desktop mode (at least on X86 machines).

Any thoughts?