I've been playing around with a few things, trying to figure out if there's an easy/safe way to artificially fake a higher resolution.
Background:
In OS X, using Core Image, it's possible to provide real-time sub-pixel rendering (not really, but for heaven's sake let's keep it simple). The best example of this is using Expose/Spaces. The application windows will be scaled down yet provide live updates - try watching a movie in Quicktime, for example - the movie will continue playing in a miniaturized version. Additionally, windows that are larger than the screen (i.e. some preference panes that are taller than 600 pixels) will be visible. Additionally, Leopard is supposed to have (some) support for Resolution Independence (super quick explanation: you can use any "size" windows/objects for any application).
So, it would seem that the OS itself should be able to support some kind of "scaling" factor. Turns out, there is.
Open a terminal window. On the command line, type:
defaults write -g AppleDisplayScaleFactor 0.5
(edited because I forgot the "-g" flag)
What we're doing is (temporarily) changing the scaling factor for the creation of new windows to be half the size they would normally be (that's what the 0.5 is for). To see how this works, open an application that is not already open (or quit/restart one) - I used TextEdit, for example.
You'll notice that the window is half the size! Additionally, the menubar at the top will shrink to half the size (to accommodate the "smaller" application) but other menubar items to the right (the time, wifi, battery, etc.) will still be "big."
Of course 0.5x the screen is not that usable (think about it - it means that you've faked the OS into thinking you have a screen of 2048 by 1200 pixels). A ratio of something like 0.8 (1280 by 750) should be alright - it's the closest we can get to the MacBook's resolution (which is the smallest "standard" widescreen resolution). I wouldn't recommend doing things like 0.75, which will start getting into "sub-pixels" (1024 / 0.75 = 1365 and 1/3).
Now, there's a way to make this "permanent" - in terminal, type:
defaults write NSGlobalDomain AppleDisplayScaleFactor 0.8
Then restart (or log out/in, but hell might as well, kill off everything just to be sure).
After logging in (the login screen will be the "normal" size), your desktop, Finder, etc., should all load up - but check out the menubar. Everything should be smaller!
While this does sound pretty damn cool, I do have to warn you that it's not perfect. For example, not everything plays nicely at a smaller scaling factor.
Firefox and Camino don't look right. Finder windows will "flash" big then small. Because we're technically rendering the screen at sub-pixels, things like scrollbars, sliders, buttons, all may look funny. Time Machine does not look right in the menubar at all. Fonts will look blurry. And so on.
This isn't perfect. However, it's pretty damn good, if you do need the screen real estate - and it doesn't require doing anything strange or funky to the display or the display drivers.
Here's a screenshot - notice the Time Machine icon in the menubar and the really blurry fonts.
