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The image in a Laser Crystal is typically etched at approximately 120dpi (dots per inch).  Each dot or inclusion created in the crystal by the laser reflects light that is incident upon it.  Inclusions occur at the white and gray points of the image.  Multiple layers of inclusions create differing amounts of white and gray.  The black points of the image do not have any inclusions etched in the crystal.  The example above provides some representation of how this occurs. 

High Quality photographic prints are typically produced at resolutions of 240dpi to 1440 dpi.  The untrained naked eye cannot typically see any difference beyond 240-300dpi without magnification aids.  A Laser Crystal is intended to be viewed from a few feet away and not examined at close range (photographs are typically not viewed that way either, right?).  For example, a large highway billboard is printed at around 10dpi but the viewing distance is several hundred feet, so it therefore looks like photographic quality from that range.