I doubt they're going for 1080p and 60 FPS just yet. That's because better graphics is valued over high resolution and smooter gameplay (people think 720p is enough, and for some reason people also think that 30 FPS is enough). Instead, it'll be something like Epic and Crytek have envisioned. On the other hand, lower-budget games will surely put more focus on resolution and framerate instead as I believe it'll be considerably cheaper than top-notch graphics.
Either way, we're going to win. Personally I'm hoping for higher framerate and more dynamic and open environments, even if it comes at the expense of graphical quality and resolution. 720p and 60 FPS is pretty good already, there's no need to rush for 1080p until we get 60 FPS. That said, I wouldn't also mind getting more seperate graphics settings for different TV sets as well: For example, game A runs at 720p@60fps, 4xAA on a 720p TV but at 1080p@60fps, 0xAA on a 1080p TV. Something like that. I can't see it being too hard in all cases.
