Text can be an issue sometimes, but through interpretation I found that for the most part I can deal with it.
I used to have my PS3 hooked up to my HDTV on 1080p HDMI. But eventually it got very akward because people would always roll their eyes at me playing in the living room, and people wanted to use the TV for other things(I have a PC hooked up to it as well). So I moved it to the bedroom to use on a SDTV and it looks fine. Not as good but still pretty good.
Later I hooked up the Wii to the HDTV(which everybody uses), and I also think it looks fine. So it's basically SD across the board for me, and I'm happy with it. I get to save money too.
Honestly, I don't think HD is all people say it is. It's completely overrated.