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Even though the unit you see in the picture is still just a pre-release model, it's hard to deny that the HTC Touch HD does look better than the iPhone 3G thanks to its bigger and brighter display.

HyperDither is an OS X image processing utility that converts color or grayscale images to 1 bit black & white using a sophisticated dithering routine. Way back in the early days of Macintosh, Bill Atkinson (of HyperCard, QuickDraw, MacPaint & nature photography fame) developed a very elegant dithering filter to convert greyscale image data to the 1 bit black & white Mac video display. The dithering produced by this routine was much higher quality than the now-a-days ubiquitous Floyd-Steinberg or "Error-diffusion" filter (used by QuickTime, PhotoShop).

The dither matrix was implemented an option in Apple's HyperScan software (A HyperCard stack with some XCMDs/XFCNs) that would connect to a flatbed scanner. HyperScan, and hence the most-excellent Atkinson dithering routine, has been unavailable for many, many years-but not forgotten! I was able to email Bill Atkinson in January, 2003 and inquire about the details of the algorithm; he was kind enough to respond with a brief write up of the routine-15 minutes later I had it up and running.
It's taken a few spare afternoons since 2003 to pack everything into a nice little application with documentation and an icon-better late than never!