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Force upscale to 1080p:
Call of Duty 4
Call of Duty WaW
Resistance 2
Uncharted
Mirror's Edge
Unreal Tournament III
GTAIV
Assassin's Creed

Native or 480p only:
Heavenly Sword
Resistance
Motorstorm
Dirt
Oblivion
Stranglehold
Rock Band
Guitar Hero

Based on a quick list of games I own, most newer games will output at 1080p with all the same soft image drawbacks of upscaled 1080p output on the 360. Some look worse than others at 1080p, typically dependent upon the native render resolution (below 1280x720 looks much softer/blurry). Almost every PS2 game with the full upscaler function checked looks worse than at 480p.

It's a bit more than "2-3 games" which could have been confirmed had you actually checked. Of course it's also pretty far from "all games" as well. Touché

"Flat screens have a fixed resolution, and you should never let the TV scale the picture. TV scalers are in general crap, and there may be controller lag as well."

^ I agree 100% with this.