You know how you zoom-in whole screen with your magic-trackpad + ctrl + 2fingers in snow leopard?
The result is not-so-nice-looking screen. You can see pixels and basically the resolution is crapy... how do I fix that?
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I don't think it is terrible!
I occasionally do some graphic and web design work, and I do a lot of photography, and when I care about pixels the ease with which I can zoom in and see clearly what's going on down there is great.
Also, as a bit of a typography nerd, I like to have a look at the sub-pixel antialiasing that's going on :B
As noted in the previous answers, the operating system doesn't re-render the information at a finer level of detail - it's like holding a magnifying glass on a printed page just shows larger detail instead of making the printing finer.
The only way to "fix" the zoom is to make the Mac draw things larger and let you scroll around to see a window of the larger information.
What you want is called an Oversized Desktop. Basically you trick the system into sending data to the graphics card to render a 2000x1024 sized desktop. Then your mouse or other commands control and a viewport of 1440x900 with some of the data drawn offscreen.
I don't know of a single program that works with 10.5 or later - but at least you know what to look for and this might spark someone else with a recommendation.