I think you're right, grainy is a better word than pixelation. To me it was like an old LCD screen, where the colors just aren't vibrant. I wouldn't mind a little pixelation if the colors popped.
Its not really pixels its calls PenTile for a reason. I may not be correct on this but im pretty sure each tile contains pixels but the hole tile basis creates a sharper image that is easier on battery life because the pixels are organized in squares.
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This excerpt is copied from wiki encyclopedia. To read the whole article, just google pentile and choose wiki.
" The developers of PenTile displays use this VESA criterion for contrast of line pairs to calculate the resolutions claimed.  However, for the same resolution and size the Pentile screen can appear grainy, pixilated, speckled, and text a little more blurry when compared to RGB stripe color. "
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I'm a owner of a d3 and I have no problem with the screen, its a good resolution and everything, doesn't seem pixelated at all to me, well actually, if you squint real close at the battery you may see some pixels
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