For many, the text may be too small at this resolution, however, because the ACD is a LCD, you can sit pretty much as close as you want to the screen without eye-fatigue. There actually are a whole slew of resolutions available that Apple does not list in their spec sheet. The problem with all of these resolutions is that, in order to draw them on the fixed pixels of a LCD, some weird pixel manipulation has to go on. Because of this, the images at all but 1600x1024 look fuzzy and poorly defined.
Text is more difficult to read, even when it's larger.
Basically, other resolutions may be good for when you want to play Quake III, but 1600 by 1024 is the only resolution worth running in normal use. There are no image distortions to work around. There is no problem with the image not reaching the edges of the screen or color guns not being perfectly aligned. The specifications do not tell the whole story though. Apple does include some color controls in ColorSync, allowing easy basic color matching and tweaking the colors, brightness, and contrast to be more accurate.