Having used CRT monitors, 1920x1080 displays, 4K displays and 5K displays, as well as various Retina Macbooks over many years, mostly for coding, here's my opinion:
The only good solution today is the iMac 5K. Yes, 5K makes all the difference — it lets me comfortably fit three columns of code instead of two in my full-screen Emacs, and that's a huge improvement.
4K monitors are usable, but annoying, the scaling is just never right and fonts are blurry.
Built-in retina screens on macbooks are great, but they are small. And also, only two columns of code, not three.
One thing I noticed is that as I a) become older, b) work on progressively more complex software, I do need to hold more information on my screen(s). Those three columns of code? I often wish for four: ClojureScript code on the frontend, API event processing, domain code, database code. Being older does matter, too, because short-term memory becomes worse and it's better to have things on screen at the same time rather than switch contexts. I'm having hopes for 6K and 8K monitors, once they cost less than an arm and a leg.
So no, I don't think you can develop using "tiny laptops with poor 1366x768 displays". At least not all kinds of software, and not everyone can.