Nelson recently did a survey and found that something like 30% of Xbox 360 owners were aware that it was an HD console. Further compounding things are the people who know what HD is, such as myself, and don't care all that much about HD gaming. I care more about getting good HD TV programming and having a good HD-DVR than I do about HD gaming. I have an antenna on my roof because I have seen HD over the air is literally compressed less than HD via cable although I recently switched to satellite to get ~30 more HD channels for much less money.
And with all that and after spending $36/month for all that HD programming with the HD-DVR, I still watch standard def programming if that's the only way to get my favorite shows. I want to see them in high def, if possible, of course, but if they're not available in high def I'll still gladly watch them. Because they're good shows.
Do I wish the Wii could push resolutions higher than 480p? Sure, that'd be cool. But my number one priority when gaming is having fun gaming, not looking at pretty games. I'm not really satisfied with 480p or Pro Logic II, but they're both more than acceptable if the games are fun. And the games are very, very fun. The PS3 will probably have a lot of good games over its lifetime, so I might end up buying one once there are enough good games to justify it to me. And the 720p gaming and digital audio will be nice little bonuses, but it won't make or break my experience.
I'll never really be satisfied with the sound or graphics of any game system because they all have so far to go. In that respect, the PS3 and 360 are only negligibly ahead of the Wii in the grand scheme of things -- none of them are as good as I'd like them to be. So I'll just focus on how much fun the gaming experience is.
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