Sales volumes determine economies of scale, it is likely the £28 tablet was made in quantities much larger than the pi screen (I'd guess at least 2 orders of magnitude).
Also, not all screens are equal. It's not just resolution: there's colour reproduction, viewing angles, brightness, contrast and response time. On the non-technical side mentioned on the blog, they mentioned they wanted a manufacture who would make the panel for a long time. I would bet a dollar that Pi screen beats the £28-tablet display on all the above parameters