Let me put it this way: If apps don't scale properly in Android, it's the developer's fault. Android has the API for the app to judge the screen-size and PPI to format the app accordingly. Fragments are there to address different screen-sizes.
http://developer.android.com/training/basics/fragments/index.html
But these devs are so lazy that they don't want use the guidelines that google has laid out countless times. I think google has been too kind to devs. Once they start forcing devs to follow these, they will get off their lazy asses.
http://developer.android.com/design/get-started/creative-vision.html
Everything will inherently look better on it. Text, videos, pictures, etc have already been said to look great.
A lot of games already have low, medium and high graphic settings like dead trigger.
Regardless I don't see a huge need for apps needing to change a lot. Since usually just text and pics anyway. There are tablets with better screens then my current Xoom and they just look a lot better since you can't see the pixels as easy.
Thanks very informative