Touch recognition is misaligned when playing iPhone games on iPad 2 (iOS 7)

I recently tried to play the iPhone versions of both Monkey Island 2 and Sword & Sworcery on my iPad 2 running iOS 7. The problem I'm running into with both games is that the touch recognition seem to be misaligned. Where I'm actually touching vs. where the touch is being recognized at are not the same.

I never ran into issues before with iOS 6 (maybe because it had the 1x - 2x functionality). I've confirmed the same behavior on my friend's iPad 2. Has anyone else experienced this?