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1080p does not look slightly better, it looks much better. I'd rather sacrifice anything but texture detail in order to keep the resolution at 1080p. You can lower shadows, light effects, object detail or even FPS in order to get 1080p running.

I also played Perfect Dark in highres mode on N64 by the way and in my opinion it did run perfectly fine and looked so much better. When having to decide between 720p and 1080p with slightly lower FPS, effect details and shadows, I'd always chose the 1080p option bacause 1080p is the TV standard and upscaled graphics look ugly and blurry.

Upscaling quality always depends on the algorythm used, therefore 720p only looks better than 900p on a 4k TV, if the 4k TV has a bad scaler. The 900p picture still contains a lot more information and detail which can be used by a good scaler to create a superior 4k image compared to 720p upscaling.