To be honest, I follow the steps 1 and step 2 of the guide for this game.

I can't remember if I selected 1920x1080 or 1440/900

With a larger monitor, I prefer 1920x1080. Anything higher than that makes text and loot drops uncomfortably small, even with the UI mod set to the largest text size. If you have a smaller monitor try something like 1600x900. Be certain to use the UI mod in the linked guide to adjust the game's font size, or you will undoubtedly find it too small at any modern resolution.

I have 24 inch monitor and am playing at 1920x1080 resolution and have to agree with the OP, everything is a bit too tiny. Text (80% bigger) is OK/ideal but items are not and there are several places where you have to really pay attention to notice some crucial items (like decanter of endless water). So I would recommend choosing a lower resolution unless you intend to pixel hunt or use a walkthrough (which I don't recommend).

I set mine to x720. Seems to be a good size for my 14" laptop. 1080 was way too small.

I played in 720p despite having a 1080p monitor.

1080 on 22' looks perfect

The original on a CRT monitor..

1080p is okay for everything down to around 13 inch. Underneath it gets critical.
With the EE you won´t have to think about it anymore at all...

I also have a 1920x1080 monitor, and find the game most enjoyable at 1280x720 resolution (with widescreen mod configured accordingly).

Stretching the viewport to 1920x1080 with the widescreen mod makes everything too tiny.

On a 24" 1920x1200 monitor I like 1680x1050 with fonts 40% larger. Some of the UI elements are a bit small, but it's acceptable.