Hi, 160x120 was chosen as a easy way to upscale to 320x240 in some future. Right now there are at least four devices supporting it - Elecfreaks Retro, ByteBoi, Retroflag GPi or ThinkBox
( https://aliexpress.com/item/1005004378623007.html )
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Question is in the title: “Any news regarding 320x240 resolution?” 
I am trying to engage my seven year old son using his drawings, but it doesn’t make much sense when you try to convert it to 16x16. 32x32 would be much better
I just bought Retroflag RPi + Pi Zero, I will try to modify Arcade code to work in 320x240 