The smaller display could be because the curved display of the LG F340 would be significantly more expensive than making a standard OLED one. Having a 720p display instead of a 1080p one would cancel out some of the extra costs that come with manufacturing an OLED display. Since LG hasn't used OLED in its smartphones yet, it probably already costs them more to make one than it does Samsung, who’s using AMOLED displays in all of its high-end smartphones.
Hopefully LG will make some smart decisions with their G Flex instead of using the flexble displays as a marketing gimmick.
source - Android Headlines