While I agree with BatVink a bit of fuzziness will always smooth out the image, I also agree with you. Fat Ball doesn't have anti-aliasing on the main character sprites (it does on everything else). This is because I made a render and export program in DBPro, and I don't think (someone correct me if I'm wrong!) I can export an img using SAVE IMAGE that GET IMAGE captured with transparency on the edges of an anti-aliased image.
Too much blabbing. Anyway, my point is, on my HTC DesireZ, I can hardly see any difference between anti-aliased images and the main characters. The pixels are so small, it's really hard to see.
So I would say yes, there may be a point where anti-aliasing in realtime rendering is dropped because resolutions are so high, but my initial thoughts are that the speed increase would be negated by having to render the new pixels. So it might be more of a case that anti-alasing is dropped because there isn't enough power to render loads of pixels and smoothed edges!