I think it would be nice if some games would be "only" 720p if that would mean that the game would have more other stuff going on (If you get a game like Skyrim on console with 1080p and bad foliage, drawing distance and so on I would prefer 720p) but in other games I would prefer a higher resolution.
Mostly in games where a clear picture is very important and where the look of the game is not very important for atmosphere and so on. Something like Counter Strike as example. Nobody needs a Counter Strike with the best graphics (well, smoke effects are kinda important), but it's pretty important to have a super sharp picture where you can see even the tiniest part of your enemy from a long distance.
But everything below 720p isn't good nowadays in my opinion but I would still play the games if they would be below that.
The problem is that developers won't have the balls to go 720p and a much better presentation overall because they would get so much hate on the interent even if their game would blow every other game away in every graphical aspect except for resolution. Pretty sad that we are at this point to be honest.
