Yes, how WP8 should work.
Zen WP8 with multiple permissions should force developers to do as little work as possible to accommodate different permissions. Other platforms dump all the hard work on developers to use physical pixels for different resolutions. Instead, WP8 uses the logical pixels 480x800 and 480x853 to account for different resolutions.
Application developers really only have to do two things. First, use the geometric design of the Grid (rather than the absolute design of the Canvas) to help with a logical resolution of 480x853. Secondly, make sure you use media assets that work well for different permissions. For example, you donβt want to play 720p video on low resolution screens, and you donβt want to stretch a 240p image on an HD resolution screen.
I wrote a lot about this issue, including code examples and the behavior of the corresponding APIs. @ http://www.developer.nokia.com/Community/Wiki/What%27s_new_in_Windows_Phone_8#Multi_resolution

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