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I think this trend sucks. Apart from looking not so good. Haze looked distinctively blurry and not as sharp as games like Uncharted or Ratchet. I didn't mind it so much with Call of Duty4 (Better said I didn't notice it). In GTA4 it was ok because the city is so spectacular but it could have been a bit sharper.
But sub 600p seems to be an area that really looses quality. I mean come on why did we enter the HD era? For sure not to be tortured with almost SD pictures scaled up. Its weird when I was playing PC 800*600 also was the absolute minimum resolution that looked tolerable. Everything below looked like shit. Seems to be the same for TVs weird.