Well I can't argue with you on that because I have never seen milkdrop at more than 1280x1024. But definitely most milkdrop presets use the blur function, and I cannot see how a higher resolution could be any benefit.
Maybe it is rather screen size that creates that impression. When comparing resolutions, make sure to keep a proportional distance to the screen. When watching or making presets, I used to sit really close to the screen; the immersion is way better when the visual fills out a large part of the field of vision.
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