One of the biggest reasons I had against picking up a PS3 was the lack of a scaler for games. I thought my TV only output 1080i and after being spoiled by HD with my 360 for the past year and a half and didn't want to go back to 480. But I noticed that Sears (I happen to have my Mastercard through Sears) had a deal with no interest on all Sony products so I went and bought one before the deal expired.
I opened it up today, hooked it up to my TV through HDMI and started up Resistance and then hit the "info" button on my remote just to check what it was displaying and expected to see "480p format" but instead saw "720p format". I was really surprised since reading through all of the info on my TV all I saw was that all it could accept was 1080i input and didn't even think that it would be able to do 720.
Long story short, it looks amazing and my initial impressions of the system are quite positive.
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