Smaller than you could ever experience with your finger (about a 90-pixel square area on the iPhone 4), and better than any other phones on the market, apparently.

Not quite. Apple's HIG recommends allotting 44pts for hit targets (about 90px on the new screen) for usability's sake, but you can hit much smaller targets if you're careful about it.

Right, I just meant your finger tip covered about that much.

You can hit smaller targets, but not easily.

176 pixels, rather than 90.