I know what you mean. It seems like computer screens should work like TVs, but somehow they don't. Way back when, a computer monitor that would display video images (VGA or video graphics adapter) was considered a real high resolution. So I figured a TV, which displays video real well, would be a great computer monitor. But a TV is a lousy monitor--older, pre VGA monitors display text a whole lot better.
I guess it comes down to the difference between displaying pictures vs text. You could display a whole web page on a PDA screen as a picture, but I suspect you couldn't read much of it. Still, that might be useful for browsing, if you could read the headlines and zoom in... Maybe that's what Picsel does.