A 7 inch Windows tablet would be great but the 1024x768 solution is cr*p.
Higher resolution would be nice for tablets in general but 1024x768 on a small 7" screen isn't terrible with a PPI of nearly 183... Just hold it about 19 inches away and it's retina as far as your eyes are concerned.
Besides, for desktop usage the lower resolution is actually still preferable because the desktop for Windows 8 is still not that well optimized for small screens with high resolutions. While any external screen usage wouldn't be limited to the LCD resolution limit...
Mind the point is also lower cost and people who want lower costs are usually willing to accept some compromises...
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