Thinkpads come with 1600x1200 LCDs (A31p). Mine is 1400x1050. Neither is interpolated.
Interpolation is not bad if done downward. I can't see how it's even possible to "overinterpolate". Characters would look horrible. 1280x1024 on this LCD is however just fine. At 1024x768 it starts getting ugly.
Also, interpolation ruins the good effect of SPA.