The most recent rumors of a phone with a 1080p-resolution display have been pretty wishy-washy, but Sharp recently went official with their plans to start churning out 5-inch 1080 x 1920 displays from their factories. That works out to 443 pixels per inch, for those of you counting. Take that in your 326 PPI and smoke it, iPhone 5.
These displays should do well in creating Android phablets to compete with the looming iPad mini, and set a new bar for what we expect in displays. Of course, there are plenty of other considerations to take into account, such as battery drain, color contrast, brightness, and the depth of blacks, but a high resolution is certainly a good place to start. The HTC Droid Incredible X may also have a 1080p screen, but again, that's squarely in the realm of rumor for the time being.
I'm a little worried that we'll start seeing diminishing returns at that size, though; will we really be able to appreciate the sharpness and quality in a 5-inch form factor, or do these screens need to be at least 7 inches in order for this high of a resolution to be done justice? Gigantic phones are certainly becoming more popular, so maybe it makes the most sense to capitalize on the larger smartphone form factor before trying to crank up the pixel density in tablets.