Update: Check out appelflap's APK that makes this whole process a lot easier. Note that some users are reporting a black screen after using the file, so be prepared in case you have to use adb shell to put your original build.prop file in place. If you do not want to risk it, Notepad++ makes for an easy edit once you pull the file to your PC. If you have fallen prey to the black screen problem, lpsi2000 found a solution that uses an update.zip approach.
In the /system/build.prop file, I changed this line:
With this, menus have smaller text (more options on screen), in-app buttons are smaller, and it just has the same feeling of being on a PC and moving from a low resolution LCD monitor to a high resolution LCD monitor.
There are a couple of glitches so far. It appears that some apps want to render in the previous resolution. For example, Skyfire and Root Explorer would not render in full screen, Android Market renders full screen but the search is in the old resolution, and the status bar is slightly garbled but still usable. Also, the dial pad is smaller (as you would expect showing a picture made for a low res display on a high res display) but the rest of the phone app is fine. The camera app fills the screen just like it did before.
With this setting, I really feel like I'm getting some use out of the high resolution display on this phone.
The apps that are rending in the low res mode of the original setting seem to be pulling their setting from somewhere else. Does anybody have an idea where that setting may be? After trying this, I can't imagine going back to what almost seems like an "accessibility mode".
I've only used LauncherPro with this setting, so no idea how the Samsung launcher looks. I attached screenshots of what some things look like. I can put some game screenshots in another post if anybody is interested. 3D games look sharper to me in this mode, but I have no scientific way of testing if it is because it is rendering in higher res or if my own excitement is clouding my vision.
Update: I suspect the missing setting is found in the /system.prop file. It has the ro.sf.lcd_density=240 setting. I tried changing it to 160, but it keeps going back to 240 after a reboot of the phone. Any ideas how to make this stick?
Warning:: TWLauncher does not play well with these changes. Make sure to have LauncherPro set up as your default launcher before trying this.