Are our screens too big - or is my eyesight just crap? :)

You could always tell your monitor to run at that res and downscale, it's what I'm doing. Makes games looks really nice.

I'm on 22" 16:10 and I can't imagine going any bigger(or wider). That's plenty of pixels to me.

I think you might be sitting too close to your monitor. And if you move back more than an arm's length away and have a hard time seeing what's on the screen then you might need stronger glasses, too. Combine that and your monitors are no longer too big and you don't have to make concious glances left or right to see everything.