I can't stand the 16:10 screen format which is terrible for everything except watching movies. That's the main reason our Nexus 7 is rarely used (and our kids are completely confused by the Android UX; although they're having a much harder time with iOS 7 than iOS 6, too).
The Air's screen is outstanding in this regard. Usually you can trust Apple to not cut corners with this sort of stuff, so this is unfortunate. It's also strange because the larger screen uses IGZO tech as well.
I wonder if Apple went this way because of the supply chain more than anything. All indications are that Apple will be moving 2-3x more iPad minis than these competitors. I'm curious if they went with the safer IGZO panel because those other technologies just don't ramp up as well.
I find it interesting that this is the only tablet that hits the 300dpi threshold, and the next Kindle White is supposed to meet this as well. 300dpi is of course the resolution of most print magazines. The implication is obvious, but what isn't is why Apple declined to participate in this race.