I think the screen resolution issue is easily overlooked - my wife had the Sony X10 mini, with a screen resolution of 240 x 320, and a lot of other cheaper Android phones have a similar resolution.
If an app developer wants their phone to work on the whole range of Android phones, the app interface needs to cope with these very low resolution screens.
One note of caution; while the platform version thing is up to date, the screens one is from August 2010. 240x320 is probably an even smaller minority now, as it only really showed up in Sony's 'mini' devices, which did not sell well and seem to have been effectively discontinued; there are no released plans for a current-gen one.
If an app developer wants their phone to work on the whole range of Android phones, the app interface needs to cope with these very low resolution screens.