What do you think SDE is? It's the ability for one to discern individual pixel structure, which is in direct correlation to distance from screen.
SDE is screen door effect, or more properly, inter-pixel gap. It is the space between pixels, and is a distance that is typically much smaller than the width/height of the pixel itself. With different technologies, inter-pixel gaps differ from each other, such as DLP, vs. LCD, vs. LCoS. In any of these cases, the pixels, for similar sized images, will be close to the same, while the inter-pixel gap will vary in size creating more, or less, visible SDE from the same distance.
But, because the pixels themselves are much larger than the gap between the pixels, this is the discernable feature that gets affected more by viewing distance and resolution.
So, while you are not incorrect about SDE being affected by viewing distance, visual acquity, as it relates to resolution, examines the pixels themselves, not the space between pixels.
This isn't entirely accurate. First off with the SS in the Panasonic pj's you can sit as close as 1 screen width away before you start to notice SDE. I had an AE900. I am currently running an Epson TW700 and sit at almost exactly, 1.5 screen widths away and rarely am bothered by SDE (keep in mind the Epson is the 2nd sharpest 720p pj out there right behind the Sanyo Z5). If I slightly defocus the pj SDE pretty much disappears.
I have watched a movie on an RS1 at 1 screen width away with virtually zero SDE. It just isn't a factor for most everyone when you get into the 1080p realm.
SDE is most definitely what you are speaking of, but visual acquity as it relates to visible pixel structure does not relate to SDE.
Smooth screen is often commented on because it actually can soften the appearance of the image as the very edges of pixels can be overlapped to elimate SDE. Yet, it is the separation of the pixels by inter-pixel gap, that helps maintain sharpness and definition in the image.
These individual pixels create an identifiable pixel structure that can be measured and directly plotted on a chart against standard human 20/20 vision.
Here is an article that explains it more fully with the graphs:
http://www.soundandvisionmag.com/hitech/1137/maxing-out-resolution.html