There seems to have been a view shared by many photographers that fewer but larger pixels are better than more but smaller pixels. I think this might have begun with the introduction of the 11mp 1Ds when some people began to notice resolution fall-off towards the edges and corners of the frame and felt the need to upgrade their lenses.
I've never subscribed to the view that 11 or 12mp on a FF sensor was sufficient resolution for most Canon lenses and that there was nothing more to be gained by greater pixel density. In fact, I was one of the few contibutors on this site who urged Michael to show comparisons between the 1Ds and the D60, using the same lens and same distance to subject. This, however, was not a priority for Michael and the comparison was eventually made by others.
We now have a DSLR in the form of the 1Ds2 which has the same pixel density as the earlier D60. Interestingly, when comparisons were made between the 1Ds2 and the newer 5D, some people found it difficult to discern any higher resolution from the 1Ds2 in real world shots, which goes to show that a relatively small percentage increase in pixel count, such as 25-30%, doesn't count for much.
I didn't find any significant increase in resolution when I upgraded from the D60 to the 20D (didn't really expect to). The major improvement for me was better performance at high ISO. I imagine that owners of both the 20D and 400D will also find it difficult to discern any resolution benefit of the 400D in real world shots. However, those who have upgraded from the 6mp D60 to the 10mp 400D should notice a worthwhile increase in resolution at base ISO because a 66% increase in pixel numbers does count for something.
Likewise, if there is any doubt about the resolution benefits of the 1Ds2 compared with the 5D, there should be no doubt about the superior resolving power of a FF sensor with the pixel density of the 400D (26mp) compared with the 5D.
If anyone happens to own a D60 or 1Ds2 as well as a 400D, it would be interesting to see comparison shots with same lens (same f stop and shutter speed) at same distance to subject, at ISO 100. I get the impression that image quality in terms of dynamic range and noise at base ISO does not change much in Canon DSLRs with successive models, comparing images with the same number of pixels.