If resolution doesn't matter, we can keep playing at 256 x 240 pixels on our NES Systems until all eternity. After all, its gameplay that matters, right?
Somebody says something similar in every thread about resolution. Of course resolution matters! And of course 1080p is definitely better than 720p! The argument is that 720p is HD and 1080p is HD. 1080p is better but to many people, it's not as big a deal.
I was happy to have my PS3 and Xbox 360 upscale PS2 and Xbox games. I was disappointed when the Wii U didn't upscale Wii games. Sharper is better than the alternative. There comes a point where it doesn't matter, though. My PC has a billion different resolution settings and I don't even know which one is best. I just chose one that looked sharp enough for my TV and left it at that.
1080p looks better but when the game is actually in motion, does it matter? My TV is 42 inch LED 1080p, active 3D capable, w/ Picture in Picture, Smart apps, 5 HDMI (one on the side I just found), and 4 USBs and 240 Hz, btw. I can't give you the refresh rate since I'm at work.