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Scaling operations reduce the quality of the visuals


Actually you always have scaling operations because the LCD screen normally has 1376*768 not 720p. While computer monitors really loose quality when upscaling TVs are very good at it.

If you do it well you do not loose any image information and the picture doesn't reduce quality at all. Its an interesting section of computer science visualization classes.
Of course an upscaled 640p image doesn't look as good as an native 720p image. But if the upscaling is good enough it will look just as good as a TV of the same size which had a native 640p resolution.