Say, what typeface did you use for the Test that you screenshotted? That's a nice one.
My test as to the look of the test is to get it to print or print to a PDF.
I set the resolution to 300 pixels per inch like you'd scan a printed document and that made it look a lot better on the screen and as I printed it.
So, is it true that if you've got pixels at 72 per inch then it's just not enough and type will look bad?
If your using the type tool in photoshop elements to make your text, then
the resolution of the document won't matter for just viewing on a computer
monitor (maybe a little). If you can't get any fonts to look good viewing the
document at 100% (actual pixels) viewing in photoshop elements, using text
you made with the type tool, then perhaps a global setting on your computer
is causing this. Also try resetting the type tool in photoshop elements by
going to left of the tool options bar and choosing reset tool.
If you intention is to print, then it does matter. If your making a document
that you want to print, start out with a document with a resolution of 300
before adding text etc.( resolutions of 240-300 or so will probably be okay)
Also, doing any resizing (except resolution), up or down, by adding or subtacting
pixels (image size dialog with resample checked), will tend to make your pictures
or documents not as good as the originals.
That's not to say you should never resize, cause there times you have to, for example
images for display on the web or emailing.
I used a Arial Rounded MT Bold font for the test images. The first e below is a 640x480
at 72 resolution and the second e is a 640x480 at 300 resolution.