Don't confuse DPI and dot pitch, two different things.
DPI is directly related to the resolution you are running. And is for the most part a measurement of how many times the electron beam can turn on and off over a given scan line.
For example: an average 19" monitor has a viewable area of 14.1 x 10.6". If you are running 1280 x 1024 your horizontal DPI is 1280 / 14.1 = 90.7 Dots per inch, and your vertical DPI is 1024 / 10.6 = 96.6 DPI. Since the viewable area does not change, you can see that as resolution changes the DPI will also change.
Dot pitch is the physical measurement of the holes in the shadow mask or lines in an aperture grill. Think of dot pitch as camera film. There is fine grain film and course grain film. A fine grain film will produce a more detailed photo. Thus smaller is better.
Jim Witkowski
Chief Hardware Engineer
Cornerstone / Monitorsdirect.com