>From the xdpyinfo you provided:
dimensions: 1024x600 pixels (195x113 millimeters)
resolution: 133x135 dots per inch
Do the calculation yourself if you don't believe me - divide 1024 pixels
by 195 mm and convert to inches.
X is calculating the correct DPI.
What GNOME chooses to do with that is up to it.
X is not bugged here.
** Changed in: xorg (Ubuntu)
Status: Confirmed => Won't Fix
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screen dpi too high with acer aspire one
https://bugs.launchpad.net/bugs/335835
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