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SvennoJ said:

No, actually it will look a little bit more blurry on a 1080p screen then on a 720p screen. Upscaling from 720p to 1080p every pixel needs to cover 1.5 pixels on the target display. You can either do it by resampling, which will soften the image, or by duplicating every other pixel, which will highlight aliasing and give an uneven picture.
It would be nice if there actually was an option to play with black borders, native 720p on a 1080p screen.

Some TVs have a "full pixel" option which will run anything in its native resolution (well my TV does). While it's nice to see everything look nice and sharp, it's kinda strange with so much empty space on the TV screens. It's hard to play Wii games in native 480p without upscaling.