yes, 1080i could mean 540p, if you want to think of it incorrectly...
Look, if you want to think of it like 540p, which would be wrong, it would be 540x1920= 1,036,800 pixels on-screen at once
So every 2 frames, you'd get the full 2,073,600. It runs at 60 fps, just not the whole image at once, and it's barely noticeable (yes, I own an awesome HDTV, I paid a lot of money for the difference, but chances are if you don't know what to look for, you won't be able to pinpoint it, or even feel left out for not having it)
720p = 720x1280 = 921,600 pixels on-screen at once
1080p = 1080x1920 = 2,073,600 pixels on-screen at once.
So here is what it comes down to, what would you prefer? more pixels on screen? it'll be a sharper image resolution wise, go 1080i (or 1080p if you're me) But 720p takes a hit on the on-screen pixels, but has better color saturation and less motion blur, I'd also say it's sharper, only that isn't fair, because it's only sharper because it's progressive, but it's also at a lower resolution.
Many people report they cannot tell the difference between 1080i/p and 720p. Most games are made for 720p. Blu-ray is made for 1080p. It's really about preference, and I don't let it worry me too much. I let my console decide what to output the game at, and I'll live with that, and I'm all about high resolutions, fidelity, all that crap. Just trust the console, I have every resolution available, and I just let the console choose.
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