The argument is more about 1080P vs 720P, 720P seems outdated since TV's with that resolution came out a long time ago and most sold now are 1080P standard. It makes 720P seem like a 10 years ago thing. That's why it's good MS didn't name the new xbox XBOX 720 because it would be a lifelong joke (XBOX 720P).
Also, for me, it's not so much what the actual resolution is, but what the max potential could be. For example, on multiplats, it would bother me to have a lower resolution or frame rate than on the other system. It's one thing if the developer CHOOSES a specific frame rate/resolution to make a game a certain way, it's another thing to be FORCED to have a lower frame rate/resolution because of hardware limitations, especially when the hardware is more expensive to buy.
