i choose my screen size based on my viewing distance, not the other way round
distance & pixelation (picture "quality"):
significance of screen resolution and viewing distance is on "pixelation". suppose you have two 42" same brand/model HD ready screens (1366x768), 1st at 5' and 2nd at 10' away. the nearer 5' screen will look more pixelated (lines becomes jagged, see less details, fine graphics become blurish, etc.) than the 10' away screen whose pixels are visually smaller even though actual pixel sizes are the same for both screens.
distance & viewing comfort (eye strain & headache?):
another important issue to consider is viewing comfort. supposed you replace the 5' away screen with full HD screen (1920x1080), picture quality will obviously improve. the issue now lies with comfort. when closer to the screem, our eyes have to cover a relatively wider angle and will become tired faster (may develop headache over time). this is because our eyes work under "pin-point" focus mode and they have to scan/hop around the screen to get a clear full picture. imagine watching a movie sitting at 1st row in a cinema, very tiring on the eyes. move further away and you will find more comfort for the eyes.
just my 2cts opinion