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For the most part, the difference between a PS2/XBox/Gamecube game and a PS3/XBox 360 game (in terms of graphics) is the advanced shader effects. In order to support the exact same shader effects at 1080p rather than 1080i/720p you need (roughly) twice the processing power in your shader hardware on your GPU.

Realistically, the PS3 and XBox 360 can not support 1080p at 60fps without a noticeable downgrade in the quality of effects which are being used; being that many of the best looking games on either platform are 720p at 30fps, by moving to 1080p at 60fps the games would probably have been reduced to similar effects as the Wii currently produces (on 480p at 30fps).