Its not exactly hype. You don't see more details by turning up the brightness (do you really believe that?) More detail comes from more DPI (dots per inch) the iPhone 4 has significantly higher DPI than the iPad. But more DPI usually means more $$$ as well, and if you want to equal the DPI of the iPhone 4 on a 10" screen it's going to be significantly more expensive than the current display on the iPad.
Oh, and a 19" display with 1024x768 resolution is NOT "pretty much standard" maybe it was in 2001, but not now. Now the standard is 1280x1024 on a 19". Still lower than the iPad's DPI, but not as big of a difference between the iPad and iPhone 4. The iPad would benefit from higher DPI because you get crisper images, higher clarity, just overall a better looking screen. Personally I would like to see iPad go to a 16:10 aspect ratio, as it's closer to the widescreen gold standard 16:9. No one makes 4:3 stuff anymore, not sure why Apple insists on it.
To answer the question, No. But it does makes things seem duller at a lower brightness. Plus ipad display is already Great. More thn good enough to see all details. People never satisfied. Then once ipad finally gets retina comparable display, then people still gonna complain. Why? Cuz by then, iphone 5 gonna have Eagle Eyes vision display(just an example)..lmfao which is better n more dpi then retina. See where im going with this. ;-). It would be different if ipad display sucked n was dull as hell but its the exact opposite.
Sure, id love a better display also, but im not gonna cry about it and base my decision on new ipad for that reason alone. By it not having it, meaning retina display.
I cant lie though, Iphone 4 screen does look clear n crisp as a mofo. ;-) ipad2 not a major upgrade anyway, only incremental, ipad 3 will be a major one though.