That level of fudged processing is visible in many different sizes of print.
The main problem there is that Mr. Schroeder set the Detail slider to 100.
Just for fun, I rummaged through my libary and found a shot of some underbrush, and duplicated his settings (Amount: 64, Radius: 0.5, Detail: 100). Here's a before and after view, shown at 200% (420 kB).
Here's a before and after view with Detail set to 0 instead:
FWIW, I compared LR 1.1 to the last version of RSP that was available and still on my machine. With RSP, you could have Processing Parameters based on ISO that set up things before you even got started. For ISO 800 on a Canon 20D (and these were published on the net somewhere),
Detail Extraction vs. noise suppression was set to -16
Noise Suppression Bias was set to 22
Color Noise Suppression Bias was set to 16
In LR 1.1 setting Luminance to somewhere between 60-70 would bring about a similar "overall smoothness" before processing is started. For sharpening, I am still bridging out to PS3 for USM. Sharpening is still just not there in LR 1.1, clearly better than it was in 1.0, but still needs work. I wish they would allow initial parameters to be set in LR upon import, but based on things such as ISO... Would help immensely..