Simple. It's the result of the new LCD. It is improved in ways that go beyond resolution. It's an IPS screen with a higher contrast ratio. You should notice richer colors, deeper blacks, and a warmer color temperature (though that is actually independent of the tech).
I think it's a massive improvement. Apple may have assigned it a rather strange name, but the LCD is miles beyond anything else in such a small portable form. It's the same type of screen found in the MacBook Pro and iPad. IPS monitors are 2-3 times more expensive than TN panels. All of those sub-$300 LCDs you see floating around are inferior TN panels with inferior viewing angles, contrast ratio, and color accuracy. Still not accurate on the level of a CRT, mind you, but very good for an LCD.