True, but it would still solve his problem, and if the native screen resolution is high enough, dropping a notch won't be too noticable unless he/she was doing graphics work. Your solution will also work, but can also mess up the display of programs - such as menus etc... being abbreviated, miss-matches.
I went though this whole process once with my partners father who had bought a 20" monitor. I set the resolution to the native resolution and he just couldn't read the screen - text to small, and he found the screen itself seemed rather big. At first, I set the font preferences (Windows XP). But all his programs started to look rubbish. In addition, sometimes a program would be using a smaller font, so it would be the same problem (i.e. his outlook express would have large text for everything, but the message itself would be in small text).
In the end, I set him up with 800x600 for a 1280x1024 native screen. It looked just fine (not perfect) and he was happy again.
A waste in my opinion, but it really is all about what you are happy with.
Hope you liked the brief story!