1. Tablet is not even close to a substitute for a laptop.
2. 1366x768 is just fine for any laptop up to 15.6 inch.
3. There are lots of laptops for under $500. Some are WAY under.
I just bought a refurb Asus laptop for one of my granddaughters for $250. It's a 15.6 with a Pentium B940. A low end "Sandy Bridge" chip. It's a very fast laptop and will even play a number of games very well. The screen looks good, the build quality is good.
Frankly, it's amazing.
btw, there are lots of people in this forum who for one reason or another say ridiculous things about screen rez on laptops. They tend to say anything that isn't the way they personally like it, is crap. Which isn't true.
Your points are taken, however;
OP wanted something under $500 with the
best screen quality, and to use as something to surf on the web when he wakes up in the middle of the night.
- My assumption on the matter is that he's not going to randomly wake up in the middle of the night and type up his masters thesis (no need for a keyboard).
- If he wants something by his bedside, a tablet would be a lot easier/simpler to pick up and use, moreso than a laptop.
- He did not ask what the most "just fine" display on a recommendation would be. IPS displays generally outperform their cheap TN counterparts in color accuracy and viewing angles; going back to my earlier example, the Kindle fire has an IPS display, and I am thinking - correct me if I'm wrong here - that your granddaughter's laptop does not. The Kindle costs $200 new, your example cost $250 refurb, lots of laptops are under $500, but it's fairly hard to find something around $200 that's still functional.
- On a side note, my hangup on higher-quality/resolution displays is that you can lower your resolution to 1366x768 on a 1920x1080 display/lower the brightness on a bright display but you can't up-res a crappy display. And it's generally nicer if you want to watch something with more than one person/playing video games/doing graphic design work, etc.; it becomes a priority when your laptop is the only computer in the house and/or if you travel. With the OP it may not be the case (as he is posting a thread here without his laptop, obviously) but you cannot upgrade a display on a laptop as easily as a desktop.
He is asking for recommendation, and I am giving my personal advice (as are you, I wholly accept that); but based on the reasons he listed, a tablet would be a legitimate recommendation that the OP may not have thought up of (once Flash is fully supported) and I felt it should be asked. You can certainly disagree and yes it turned out that it's not a good fit (due to the lack of Flash support), but there's no need to be snarky about it.