I already have a post in this thread about this. Resolution by itself is meaningless. It's all about context. And in this context, you need to measure resolution by FOV degree. In that sense, it'll have half the pixel density per degree of the Sony HMZ-T1 (which many, myself included, can still clearly see pixel structure on). A 1080p screen will make a big improvement, but it's still going to have fairly large pixel structure. I think Abrash did the calculations and said something like 4k screen are what you'd ideally want.
Just something people are going to have to get used to and accept. 1080p and better latency tracking still make the retail product exciting (even if it will just be the first step in the process).
So I have an HMZ-T2 system I imported and slapped together a TrackIR tracking system to the visor. It works very well. It gives me responsive stereoscopic 3D with 2 1280x720p resolution panels operating at 120hz. I've been playing Arma 2, Dirt 3, Skyrim, HAWX, Wings of Prey, and Freespace 2 in 720p resolution, stereoscopic 3D, and full and very responsive (X,Y,Z,Yaw,Pitch,Roll) head tracking. The HMZ-T2 is much lighter and smaller than the rather clunky HMZ-T1, and I really enjoy it.
However I am still more excited about my Rift. I understand it is lower resolution than the T2, and I understand that Occulus VR lowered the resolution of the production dev kits to save money. The HMZ's have a pretty large tunneling effect, mainly because it is meant for simulating a theater/cinema experience and not for games/emersion.
I understand that this is a dev kit and I'm willing to overlook the lower resolution, its about emersion, and I'm really looking forward to a stereoscopic 3d experience with a near borderless display. I really hope it changes things for VR, and in the end we end up with a great, widely supported consumer product in the next 3 to 5 years.
(and besides even if there was a perfect 1080p/eye 120 Hz OLED display available, you'd need $3,000 worth of GPUs (triple Titans) to power that somewhat)
I run my HMZ-T2 at 1280x720p in stereoscopic 3D with full head tracking at 60+FPS on every game I've tried it on. I'm running it with 2 6990's in xfire.