Sharp was showing off the world's first mobile feature phone with a VGA display. Actually, they were showing off the display, but hiding the rest of the phone, since Vodafone doesn't want to announce the phone itself just yet.
VGA is 480 x 640 pixels, four times as many as QVGA. On a phone-size display, this provides an extreme level detail.
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The display was about what we expected - amazingly sharp and detailed.
It wasn't as bright as some QVGA displays, but that's also to be expected. With so many pixels crammed into a small space, the circuits between the pixels take up proportionally more space, leaving less area for light to pass through. That's one of the things that's held back VGA displays this small until now - getting them bright enough.
It will probably be a while before VGA displays are terribly common on phones. In the meantime, there are display sizes in-between QVGA and VGA that may become more common, such as the 352 x 416 size display Nokia has been putting in many of its high-end S60 phones lately. While QVGA is pretty great, there's little question that higher-res displays are even better.