Erel:
Have you actually had an emulator running at this resolution (2560x1600)?
I tried the highest version of Android (4.0.3), but it still would not start the emulator -- I only get an opened window, but no "Android" moniker and no emulator startup (at least for 6 minutes).
I tried stepping up above the typical Galaxy S3 device of 1280x720 (which does run on the emulator with no problem), increasing to only 1280x800, with Android 4.0.3 and ARM v7a. That emulator did start, but it took over a minute to get past the "Android" moniker. My App ran fine, though it's not CPU-use intensive.
When I increased to 1366x768 (the next higher typical resolution on devices that I've seen), it would not start the emulator again, though it takes my laptop (an ASUS Quad Core, Core i5) into a high-CPU-usage condition.
For me, it seems the highest resolution I can get is 1280x800 on the emulator.
I'll use my actual Nexus 10 device from now-on. Thanks for your help.