PS3 games and the lack of 1080p

[Kyros]

"1080p still looks better with 4xAA over 2xAA. Any PC gamer knows that."

Yeah but 1080p 2AA looks better than 720p 4AA so it is no sacrifice

"If hardware wasn't some kind of limitation, we would be seeing more true 1080p games than we do,"

Arg no we wouldn't. Todays consoles are perfectly able to display 1080p games (as year old PCs were able to display 1600*1200 games).
But of course the per-Pixel operations for the scene would have to be halfed against 720p (double the pixels).

So a developer has the options:
a) a game with twice the per-pixel operations (like shader effects etc.) for 720p or less per-pixel operations for 1080p. This has nothing to do with absolute power and would hold true for much more powerful systems. The ratio would still hold true.

Since the number of customers with 1080p displays is much smaller than the number of customers with 720p he would essentially give most customers a worse game if targeting 1080p.

Thats all, if there were more people with 1080p displays the situation would be different. Is this too complicated?