If it was at 60fps you would be able to spot things in the distance very easily because you would have twice the number of frames beeing sent to your brain.
Also, saying its "blurred" is overstating it. Its still as good as what we have had if not better than last gen resolution. I'm sure no one was unable to see the games in their TV's and certainly didnt consider them "blurred".
If you think you make more logic lets aproach it: Your reason to have higher resolution are 1. shooters and 2. only the moments where you need to snipe really far away targets. 60fps improves all of your gameplay. Its not just one specific instance in a single genre. Yeah, logic.
Having 60 fps will help you to spot thing on distance because you have "twice the frames sent to your brain"? That's beyond ridiculous. It can help in reducing input lag and smoothing the animations, but seeing objects in the screen is a image quality characteristic. And image quality involves resolution, not framerate.
Yes, it is blurred. There isn't a way to upscale 720p to 1080p without losing image information because you don't have a direct correlation between pixels (unlike 1080p and 4K or 540p and 1080p). You aren't unable to see your games, but you will se them blurred and with aliasing problems.
Yes, it's logic. It's image clarity. It's about seeing better what you are doing. Seeing better the whole game. Shooter are just one single example. Being able to see far things and to see close things without blur improves your experience as much as smooth animations.