I think I may have figured out why some of the early models of the MID is prone to "Bad Pixels". I took a bad unit completely apart. The display is a simple LCD with a "bonded" connector, which then is "Bonded" to the main circuit board. I was able to wake up some bad pixels by pressing on the bonded connector at the board. Once I let go, the pixels would disappear again.

The bad news: It would appear to be a rather bad manufacturing defect in the connection of what is called the "zebra" connector where it is supposed to be bonded to the circuit board. I attempted to remove / reseat the zebra connector and nothing would fix it. The zebra connector is made of silicon rubber with alternating carbon pads for the electrical connection from the board to the LCD glass edge connector

Looks like "Bad Pixels" means throw it away and get a new MID.