I have been using 1280x1024 for a while now.. my laptop is also at this resolution. I am using a 19 inch Monitor too.
I cannot imagine someone using the 2050x1950 or whatever.. You would need a dang 21 inch and STILL it would look small.
Adobe Photoshop is nice at 1280x1024. You can have lots of boxes open and still have room to draw--I also go to 1600x1200 for some things..