Because the PS3 can't handle it, though some PS3 games can, anything lower means it'll upscale to fit the screen, look at this list of PS3 games, most PSN games can handle it, and remember, 1920x1080 is 1080p. Link is here. And for the record, most 360 games that support 1080p are upscaled to it, not run native to it.
Playstation 3
50 Cent = 1280x720 (blur filter)
Afro Samurai = 1280x720 (QAA)
Alone in the Dark = 1120x630 (no AA)
Army of Two = 1280x720 (no AA)
Assassin's Creed = 1280x720 (QAA)
Battle Fantasia = 1280x720 (no AA, toggable blur filter)
Battlefield: Bad Company = 1280x720 (no AA)
Beijing 2008 = 1024x768 (no AA)
Beowulf = 1280x720 (no AA)
Bionic Commando = 1120x640 (no AA)
Bioshock = 680p (no AA, blur filter)
Bourne Conspiracy, The (demo) = 1280x720 (no AA)
Burnout: Paradise = 1280x720 (2xAA)
Call of Duty 3 (screenshot) ~1088x624 (2xAA)
Call of Duty 4 = 1024x600 (2x AA)
Call of Duty: World at War = 1024x600 (2x AA)
Cars Mater-National = 1280x720 (QAA), 1920x1080 (QAA)
Chronicles of Riddick: Dark Athena = 1024x720 (QAA)
Command & Conquer: Red Alert 3 = 1280x720 (no AA)
Conan (demo) = 1024x576 (no AA)
Condemned 2 = 1280x720 (no AA)
Conflict: Denied Ops = 1280x720 (no AA) or 960x1080
Dark Sector = 1152x640 (no AA)
Darkness, The (demo) = 1024x576 (no AA)
Dead Space = 1280x720 (no AA)
Def Jam Icon (screenshot) = 1152x648 (no AA)
Devil May Cry 4 = 1280x720 (2xAA, temporal)
Elder Scrolls IV: Oblivion = 1280x720 (no AA)
FaceBreaker = 1280x720 (QAA), 960x1080
Fallout 3 = 1280x720 (no AA)
Far Cry 2 = 1274x692 (QAA, centered on 720p window)
Fifa Street 3 = 1920x1080 (no AA)
Full Auto 2 (demo) = 1920x1080 (4x AA)
Fracture = 1152x648 (no AA)
Ghostbusters = 960x540 (QAA)
Ghost Recon: Advanced Warfighter 2 = 1280x720
Godfather II = 1200x720 (blur filter)
Golden Axe: Beast Rider = 1280x720 (no AA, blur filter)
Golden Compass = 1280x720 (no AA)
Grand Theft Auto IV = 1152x640 (no AA)
GT5 Prologue (demo) = 1080p mode is 1280x1080 (2xAA) in-game while the garage/pit/showrooms are 1920x1080 with no AA. 720p mode is 1280x720 (4xAA)
Guitar Hero 3 = 1040x585 (no AA)
Guitar Hero Aerosmith = 1040x585 (no AA)
Guitar Hero World Tour = 1040x585 (no AA)
Haze (demo) = 1024x576 (2xAA)
Heavenly Sword = 1280x720 (4xAA)
Incredible Hulk = 1280x720 (no AA), 960x1080 (no AA)
Jericho (demo) = 996x560 (2x AA)
Juiced 2: Hot Import Nights = 1280x720 (QAA)
Kung Fu Panda = 1280x720 (no AA), 960x1080 (no AA)
Lair = 800x1080 (2xAA) - AA buffers are merged to produce 1600x1080 for further scaling
Legend of Spyro: Dawn of the Dragon, The = 1280x720 (no AA)
Legendary = 1280x720 (no AA)
LEGO: Batman = 1280x720 (no AA, slight blur filter)
LEGO: Indiana Jones = 1280x720 (no AA), 960x1080 (no AA)
Lord of the Rings: Conquest = 640p (no AA)
Lost Planet = 1280x720 (temporal 2xAA)
Madden NFL '09 = 1280x720 (no AA)
Marvel: Ultimate Alliance (screenshot) = 1920x1080 (no AA)
Mercenaries 2: World in Flames = 1280x720 (no AA)
Metal Gear Online = 1024x768 (2xAA, temporal)
Metal Gear Solid 4: Guns of the Patriot = 1024x768 (2xAA, temporal)
Midnight Club: Los Angeles = 960x720 (QAA)
Mirror's Edge = 1280x720 (no AA)
MK vs DC = 1024x576 (QAA)
MLB08: The Show = 1280x720 (2xAA) - The rendering window is adjustable down to 576p without upscaling to 720p i.e. the frame has black borders
MLB09: The Show = 1280x720 (2xAA) or 1920x1080 (no AA)
Motorstorm = 1280x720 (2xAA)
MX vs ATV (demo) = 1024x576 (no AA)
NBA07 (demo) = 1920x1080 (no AA)
NBA08 (demo) = 1920x1080 (no AA)
NBA Live '08 = 1280x720 (no AA)
NBA Street Home court (screenshot) = 1920x1080 (no AA)
Need For Speed: Undercover = 1280x720 (QAA)
NFL Tour = 1280x720 (no AA, poor framerate)
NHL '09 = 1280x720 (4xAA)
Ninja Gaiden: Sigma = 1280x720 (has weird scaling to support 1080p)
Overlord = 1280x720 (no AA)
Pirates des Caraibes (screenshot) = 768x1080 (no AA)
960x720 en mode 720p
Prince of Persia = 1280x720
Pro Evolution Soccer 2008 = 1280x720 (QAA)
Prototype = 1120x640 (QAA)
Quake Wars: Enemy Territory = 1280x720 (no AA)
Race Driver: GRID = 1280x720 (2xAA)
Rainbow Six Vegas 2 = 1280x720 (2xAA)
Ratchet & Clank: Tools of Destruction = 1280x704 (2xAA, centered on 720p output)
Red Faction: Guerrilla = 1280x720 (no AA)
Resident Evil 5 = 1280x720 (dynamic 0-QAA)
Resistance: Fall of Man = 1280x720 (QAA)
Resistance 2 = 1280x720 (2xAA - GDC09 slides)
Ridge Racer 7 (demo) = 1920x1080 (no AA)
Rise of the Argonauts = 1280x720 (no AA)
Ryu Ga Gotoku 3 = 1024x768 (no AA)
Sacred 2: Fallen Angel = 1280x720 when sub-HD output selected, 1920x1080 for any HD output (no AA)
Saint's Row 2 = 640p (QAA)
SCORE International Baja 1000 = 1280x720 (no AA)
SEGA: Rally Revo = 1280x720 (4xAA, alpha blend)
SEGA: Superstars Tennis = 1280x720 (QAA, 30fps)
Silent Hill: Homecoming = 1024x576 (no AA)
Skate = 1280x720 (no AA)
Soldier of Fortune: Payback = 1280x720 (no AA)
Sonic Unleashed = 880x720 (blur filter)
Soul Calibur IV = 1280x720 (no AA), 1280x576 in 1080p mode
Spiderman: Web of Shadows = 1280x720 (no AA)
Street Fighter IV = 1280x720 (no AA), 630p in up-close character view?
Star Wars: The Force Unleashed = 1280x720 (no AA)
Stormrise = 1280x720 (2xAA)
Tiger Woods PGA Tour '09 = 1280x720 (no AA)
Tomb Raider: Underworld = 1280x720 (QAA)
Tom Clancy's EndWar = 1280x720 (2xAA)
Tom Clancy's HAWX = 1280x720 (no AA, horizontal blur)
Tony Hawk's Project 8 = 1280x720
Tony Hawk's Proving Ground (demo) = 1024x576 (no AA)
Top Spin 3 = 1280x720 (QAA)
Transformers (screenshot) = 960x1080 (no AA)
Turning Point: Fall of Liberty = 1280x720 (no AA)
Turok = 1280x720 (no AA)
UEFA Euro 2008 = 1280x720 (no AA)
Uncharted: Drake's Fortune = 1280x720 (2xAA)
Unreal Tournament III = 1280x720 (no AA)
Viking: Battle for Asgard = 960x720 (2xAA) - AA buffers are merged to a 1920x720 framebuffer, which is then downscaled to 1280x720
Virtua Fighter 5 (screenshot) = 1024x1024 (no AA)
1024x768 en mode 1080p
Virtua Tennis 3 (demo) = 1920x1080 (2x AA)
WWE 08 (screenshot) = ? 640x720 ? (2x AA) - les edges ont l'aparence du 1280x720 mais d'apres certain artefact il semble que ce soit le resultat de la fusion de 2 buffers MSAA 640x720
translation StefanS: "The edges give the impression of being 1280x720p, but because of a certain artifact it seems that it is the result of the fusion of 2 MSAA buffers of resolution 640x720"
WALL E = 1280x720 (no AA)
Wanted = 1120x640 (no AA)
Wheelman = 1280x720 (no AA)
World Series Of Poker 2008 = 1920x1080 (2xAA)
X-Men Origins: Wolverine = 1280x720 (no AA)
PSN GAMES
1942: Joint Strike = 1280x720 (4xAA) or 1920x1080 (2xAA)
Blast Factor = 1920x1080 (no AA)
Bionic Commando: Rearmed = 1280x720 (no AA)
Calling All Cars (screenshot) = 1920x1080 (4x AA)
Commando 3 = 1280x720 (4xAA) or 1920x1080 (2xAA)
Echochrome = 1920x1080 (2xAA)
Elefunk = 1920x1080 (4xAA)
Forbidden Siren = 1024x512 (4xAA)
Go Puzzle = 1920x1080
GTHD = 1440x1080 (no AA) - Vehicle selection is rendered at 1920x1080
High Velocity Bowling = 1920x1080 (no AA)
Locoroco Cocoreccho = 1920x1080 (2x AA)
Mainichi Issyo = 1440x1080 (4xAA)
Pixel Junk Monsters/Racers/Eden = 1920x1080
Rocketmen = 1920x1080 (2xAA)
Rub'a'dub = 1600x1080 (no AA)
Snakeball = 1280x1080 (no AA)
Stardust HD = 1280x1080 (no AA)
Sudoku = 1920x1080
Super Rub-a-Dub = 1600x1080
Tekken 5 Dark Ressurection (screenshot) = 1920x1080 (no AA), not always?
Warhawk = 1280x720 (4xAA)
Wipeout HD = dynamic-framerate-dependent 1080p framebuffer (1280x1080 to 1920x1080)
Wolf of the Battlefield: Commando 3 = 1920x1080 (2xAA)
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