It has nothing to do with 1080p, 720p is fine for high resolutions. If you have low rez textures you can have 100080p and it will look horrible, the resolution is bottlenecked.
I agree that PS3's HD graphics are a little underwhelming, I think it's because that most games on the PS3 don't support 1080p. Even the game I'm looking forward to the most, Killzone 2, is only in 720p.ElectronicMagic
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