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I don't think the game would have to reset entirely *if* (and that's a huuuuge if) they did do the enhanced dock stuff.

When you change graphics settings on your PC game, even from high settings to low it's not like the game or even the entire PC resets.

That said, I'm still 50-50 on that, wouldn't be surprised if they did offer a dock with better graphics for TV, but I wouldn't be surprised if they didn't do that at all and what's in the NS hardware is all you get.