What's the difference between Dots Per Inch and Pixels Per Inch?
Dots per inch is a printer term, Pixels per inch is a display term. Neither really says anything unless you know the size of the dot or pixel. Kinda like contrast ratio's for displays. Is the 0 a measurement of the display turned on with a completely black screen, or turned off? Depending on the manufacturer it could mean either.
So if text on the iPhone appears "crisper" it's not due to the screen, more likely the underlying rendering technology. I would expect images to be more accurate/crisper on the N800 screen due to the inherently higher resolution.