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Then check your PS3 display settings. It will probably show a check by 1080i, which is how the console outputs signals to non-native 1080 displays.

Either way, it's a crushed signal being displayed on a non-native 1080 display. While it's possible to force a higher resolution on a lower resolution display, it still can't add more actual (non-interpolated) pixels and detail than the display physically has.