I get what you're saying, Ceera, but I thing you're over-applying your logic regarding inches. My point is that people should forget about inches altogether and just think about total pixels. Do that, and none of your other points matter.
That having been said, there are a couple of points of yours I'd like to address.
I think the main problem with your argument is right here:
From: Cerra Murakami
If an artist designs a texture at 10 by 10 inches and 300 DPI
Do you actually know any artists who design textures this way? I don't.
You're of course technically correct that if someone were actually to try that then SL would end up discarding 2/3 of the pixels, and it wouldn't do as good of a job of it as Photoshop would. However, I think the point is moot because nobody starts a texture by thinking about inches. As I've said several times now, all anyone should be thinking about is the total number of pixels. Inches have no bearing.
From: Cerra Murakami
if they were working at 72 DPI when they rescaled it, then the image on their screen will, in most cases, be an "actual pixels" image, accurately representing what the SL version will look like. If that same file in Photoshop was 300 DPI, they see a postage stamp, until they expand their view to "Actual Pixels".
That really isn't true.
In Photoshop, if you're at 100% maginification, you're always seeing "actual pixels", regardless of dpi. Every zoom value on the navigator is a percentage of actual pixels.
To see the effects of dpi, you actively have to choose to view your image at Print Size, which it never is at by default. It's pretty tough to edit anything effectively at that zoom level (20-30% of full magnification), and it's usually not even accurate on most screens anyway. That's why Print View is buried in the View menu instead of having a dedicated presence in the GUI. It's not often used because it's not often useful.
Whether someone works regularly with photos, textures, or any other type of image, they should be used to working with actual pixels on screen and not thinking much about dpi during the editing process. For the photographer or the graphic designer, dpi comes into play when thinking about at what size and quality to print the photo, but during the actual processing work, it has little if any bearing. For the texture artist it has no bearing at all.
Even the magic number 72 ppi, is only an arbitrary figure. Very few modern monitors actually operate at that resolution. For example, the two monitors on my desktop are both 24" with pixel counts of 1920x1200, or approximately 94 ppi. My laptop screen has the exact same pixel count, but it's only a 17" screen, which puts it at about 132 ppi. If someone's got a 19" screen at 1600x1200, that would be about 116 ppi, while the same size screen at 1280x1024 would be roughly 96 ppi (both resolutions are available for 19" flat panels). The number 72 really doesn't have much to do with anything anymore.
I'd strongly encourage everyone reading this to forget all about dpi or ppi in relation to texturing. It has no relevance.