I need a hand magnifier to read tantalum print - and it helps with 1/8W resistors (but that is possibly more to do with the nice white LED in the magnifier shows up the colours nicely :)
I did do some kynar wiring hacks under a big magnifier to a simple Velleman (or Velleman style) dice project to convert the PIC socket to AVR Tiny pin layout. That was enough to put me off tiny tiny things :)
To be honest, the fact that AVRs are so damn powerful and featureful means anything I'm likely to make will require a fairly low discrete count!