The problem with some of the Wobulation chips out there is that the mirrors are a tad too large. So the resolution suffers just as on a CRT where the electron beam is too fat.
Somewhere (I forget what forum) someone showed a 1:1 pixel resolution pattern produced by a chip with Wobulation and the black spaces between the white lines were barely distinguishable.
One chip maker's brochure describing Wobulation shows diamond shaped DLP mirrors. But in that diagram the diamond mirrors have a fill ratio of about 90% which in my estimation leads to white lines being too wide. The correct fill ratio for chips with Wobulation used in this video application is about 50%!
Aside from this problem, Wobulation can produce a picture indistinguishable from full 1920x1080 pixel chips. With the 2x, 4x, etc wheel speed the even column odd column flashes are too fast for most people to see interlacing artifacts.
I believe those were images from Mr. Wigggles' thread over at AVS that allan is referring to.
I don't go near wobulation because of all the dithering which I really can't stand. It's very obvious if you go up to the screen to see the diamond array if it's wobulated RP as opposed to a non-wobulated display with a fixed-pixel rectangular grid.