Nope, I'm onboard with the understanding of ppi and what Tony was saying. I was just letting him know that I don't use 72 ppi by default so when I click "print size", it doesn't zoom out beyond my monitor border. I just did one for grins and it's 54x36" (3888/72 for me on the 40d).
Back to the original question though, so I'm home and I'm looking at what I've got. I open an image, adjust, crop, apply some sharpening and it's sharp, let's say viewing at 50%. Now I click "print size" to see the 8x10 representation in PS and it goes soft. Okay I hear what you are saying about the 25, 50, 100% issue, but that doesn't explain what I'm seeing. The "print size" button on my 8x10 sets the zoom to 24%, if then click "fit" it zooms all of 12% to 36% and it looks sharp again. Not fitting neatly into the three choices above of 25, 50, 100. I can also manually change that zoom of 24% to 23 or even 27%, whatever I want, and it sharpens backup (of course up to a certain zoom, then we're pixel peeping). If I then click "print size" again, it resizes to 24% zoom and goes soft.
Now can I say that what I'm seeing at 23, or 36% is as sharp as if I viewed at 25 or 50%, I can't say, maybe limitations on my eyes or monitor, but they look acceptable to me, although armed with what I learned here, I think I can see the difference, at least at larger percentages. What I can say though is that no matter what the zoom level is on the "print size" be it 24% for an 8x10, or 33.4% for 16.2x10.8, it is soft enough to be VERY obvious. It doesn't seem to be tied to the viewing percentage but more a result of clicking the button, as weird as that sounds (and hence why I'm here).
It's something I don't recall from CS4, or Elements before that, but CS5 was a bare bones install for me, new PC, 64bit OS etc, a clean slate, so I've been really studying everything (same monitor though).