What is X server DPI used for?

Hello,

I recently learned that my X server (stock xorg-x11-6.7.0-2 from FC2) is 
running at 75x75 DPI
while my LCD display (SXGA+ with 1400x1050 pixels, and 12x9 inches physical 
size) apparently
has a resolution of about 116 DPI.

So I tried with restarting X with -dpi 116, but I don't really notice any 
differences.  In fact, I tried setting it across a broad range of values and 
still saw no apparent differences.

What does the X server use the DPI parameter for?  Does it matter if X is 
using a different DPI than the native resolution of my display?  Will my 
fonts be screwed up or something?

Thanks for any clue to a newbie.

-KF

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