I've got mine set at 530 dpi, which is the lowest the phone can handle before it starts acting up. No issues at all with any stock apps or the stock launcher, it's perfect for this screen size and resolution. Now, one thing I don't know for sure is how the stock LG keyboard likes 530 dpi, because I've been using Swiftkey since day one. The LG keyboard is horrible, IMHO.
I used texdroider to change the dpi setting, it was very simple to do. It's definitely the safest way to do this, and I've never had a problem using it on any phone I've had over the last few years.
After changing the dpi to what it should have been out of the box, I used G3 Tweaksbox to set my navigation bar height down to 36 pixels. Now I really have maximized the screen without sacrificing any usability.
If I couldn't root the G3 and make all these various tweaks and changes, I honestly wouldn't even want to use the phone in its stock format, I'd have to choose something else.