I was really worried about the art quality and small screen when I bought my laptop last year, but so far, it's worked out fine! I think the main thing that's helped is having a really flexible tablet- all of the landscapes I did last year were done with a mouse, which hurt the quality/design flexibility a bit.
I think it'd kill mine too, actually >_> I've only attempted it once or twice, but I hear the pros work in ridiculously high quality, and that I should start trying to take a stab at it. EVENTUALLY! And yup, 300 is standard print quality, which is why I started to work in that. It's worked wonders, I used to work in 72 and could never get the results I wanted.
Oooh, painting in 500-600dpi could require some really good computer specs, which I can't afford at the moment. 72dpi is typically used for web-based graphics and if you're not printing.
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