If you want to learn more about squeezing more pixels closely together and what limitations there are in this area I suggest reading about Nano Pixel Technology which was developed recently and represents not just a new step but a new leap in this area.
In fact with development of Nano Pixel Technology the ability to physically squeeze as many pixels in small area is no longer the limitation for screen resolution. Current limitation for how big screen resolution we can have is actually the ability to deliver enough data to the screen in order to display the finial picture properly. Of course the refresh rate also has a huge impact to all this.
Since you have been in computer world for some time I guess you probably still remember the time of CRT monitors and how you could have your CRT monitor displaying 800 x 600 resolution at 80 Hz but if you wanted to display 1024 x 768 resolution your the screen refresh rate would drop down to 60 Hz. Back then we were also limited by the signal bandwidth similar as we are today. So I'm guessing that before we se next big leap in screen resolution we would have to see a development of new technology for delivering the screen signal from graphics card to the monitor itself.
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