Actually, the biggest advantage to "HD" is progressive scanning, rather than just sheer resolution. I would rather watch something in 720p than in 1080i (seriously, interlacing a huge resolution like that looks like garbage).
At any rate, the increased resolution from 480p to 720p is noticeable and still worth watching. 1080p looks impressive on larger screens, but I wouldn't say you were "missing" the point of Blu-Ray watching just because you're watching in 720p. I would say that you're missing a lot more from not using surround sound than you are from using a lower than 1080p resolution.
-Betta
Thebettafish
1080p looks just as impressive on smaller screens.
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