UI font scale & dpi confusion (physical resolution component)

I'm trying to use the physical resolution component, but I'm having problems creating readable text with it. When setting 72 dpi and designing the UI in the editor (1024x768), the size is upscaled as expected on an iPad (2048x1536), but the font is extremely blurry. It's almost unreadable, and it looks like the font is only rendered at half resolution and then upscaled.

I'm unsure if I'm using this component in the right way: What does "unit" exactly mean? Pixels per inch makes sense, but what's pixels per point (default setting)? Does DPI always mean dots per inch (pixels per inch) or dots per <unit>?

Also, the physical resolution component only updates the rect transform scale when I activate play mode - is this intended or a bug?

 

Check out this thread it might answer some of your questions about blury fonts.

http://forum.unity3d.com/threads/sharpenning-text.263810/#post-1747500