Well, I'll give you that it's prettier than the original 3DS...
Zigged where you probably should have zagged, Ninty.
I understand it, hell, my parents need to grab their reading glasses for just about everything and if they were to game (which there is 0% chance of that happening) I would bet they would take the larger screen any day. Having the larger screen is also a bit more forgiving on using a stylus from an accuracy standpoint. Easier to press something bigger than smaller.
I like the compact one too, don't get me wrong. The XL devices are not for me. They are the right call for someone else though.
The screen resolution seems like an issue, but from what I hear games still look pretty good. Also, the larger screen allows for original DS games to be played in their original resolution (apparently the 3DS reduces that somewhat). Also, I think you have to keep in mind that there are already quite a few 3DS games out, and those in development are going to be in the same resolution as the 3DS. It would probably be difficult to suddenly change the screen resolution for game developers (many of which are 3rd party). I have heard that the 3DS XL does not have anti-aliasing, so some images (specifically I've heard Pokémon avatars) might look jagged. But otherwise, I'd say gamers should give the 3DS XL resolution a chance.
I'll most likely be getting one. I missed out on the 3DS at launch, and I've been waiting for a good time to get one. I'm very optimistic about this console.