If building 500ppi screens becomes trivial, how long before that manufacturing prowess trickles down into displays in other devices besides smartphones? You forget that the cutting edge displays of today are tomorrow's budget beaters.It's a damn dick waving contest, and that's it. People know what HD is and what megapixels are on their camera, so product designers are playing the "higher is better" card. It's the same stupidity that lead to the GHz race (and high frequency processors with low IPC) and other such metrics.
This isn't a computing resource that can be "grown into" like RAM. There's a very finite limit at which individuals can no longer resolve individual pixels. Exceeding that limit will not provide any kind of benefit, but it will require more powerful, more hungry GPUs and backlights to feed the beast. Actually improving things for consumers would be to provide a retina class display with an RGB stripe, 100% sRGB coverage, and factory calibrated to a reasonable dE variance.
What if the "retina" moniker faded away and 300ppi displays came standard on every laptop/tablet/phone on the market? We're quickly approaching that era, and it's in large part due to R&D dollars being spent on developing higher density displays and improving manufacturing processes.
I know it's a hard concept for some people to comprehend, but one major way we improve the quality of mass market products is to keep pushing the envelope on cutting-edge tech and letting economies of scale trickle it down.