I mostly agree with you, especially for OLED. The use of "pentile", vert RGB, RGBY, and RGBW of various rotations makes it a pain. However, they already do super-resolution, transport compression, local dimming and other tricks in the display driver/TCONs. So something like this might be done locally, but you might also end up with weird results since just a couple of days ago a web demo on HN managed to screw up LCD pixel inversion. It's a case where there's rarely enough profit margin in doing something right in HW, while it can be done correctly in SW.