<< 1280x1024 just drives me up the wall for 2D. >>
The aspect ratio of a monitor is 4:3. 640x480, 800x600, 1024x768, 1400x1050, and 1600 are all 4:3 aspect ratios and thus all fit the monitor perfectly. 1280x1024 is an oddball 5:4 aspect ratio and thus all pictures are distorted with a 1280x1024 display.
Matrix and 3dfx (dunno about nVidia) include this 1280x960 resolution as a default resolution. It is strange that ATI doesn't, considering that they pay so much attention to 2D. IMHO, 1280x960 is the most appropriate resolution for some 17" monitor and some 19" monitor users, while 1400x1050 is the most appropriate for some 19" monitor users as well.