1080p is great. It should be the standard, but if the hardware can only do 1080p by sacrificing effects and texture quality then then no, lower the resolution.
There's only 2 races: White and 'Political Agenda'
2 Genders: Male and 'Political Agenda'
2 Hairstyles for female characters: Long and 'Political Agenda'
2 Sexualities: Straight and 'Political Agenda'