Consoles would benefit at running games 720p instead of 1080p.

[SvennoJ]

You mean sales of gaming pcs would benefit if consoles go back to 720p.

Going back to GT6 I already see a big downgrade in resolution and that runs in 1440x1080. It depends on the game ofcourse. For fast racing I like to have a clear view of what's coming up in the distance. If you like slow moving third person games and are always focused on your character right in front of you, then 720p to 1080p isn't that much of a difference. Infamous SS blurs the distance, not the best showcase of 1080p, yet the effects still look a lot better than if they were rendered in 720p.

After seeing native 1080p coming out of consoles it's hard to go back to the softness that upscaling introduces in the image. Btw have you recently watched any 480i content on your 1080p LCD screen? Some blu-rays have extras ported right over from the DVD, looks horrible.