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Advantages/Disadvantages

 

Advantages: More room to run applications in, less scrolling side to side and up and down in your windows, more colors (this isn't necessarily true, but it is a closely related topic, and I'll address this issue below), more colors means nicer looking pictures (ever notice that annoying color banding (called dithering) in most of the pictures you look at), A much less cluttered appearance (unless you're one of those people who upon getting more space, feels the need to fill it up).

Disadvantages: With higher resolutions and colors, there is a performance hit (speed), which could be big or small depending on your hardware and the resolution you set up (generally it's a very small performance hit). This is due to the fact that there is much more information to deal with as well as more pixels to update on-screen (I'll get to this below), The higher you set your resolution, the smaller your icons and text, and your refresh rate drops (I'll get to this too).

Intro	The Analogy