A lot of PSN and XBLA games are 1080p native. HD remakes too. But most retail games are 720p or sub-720p native so as not to sacrifice looks or framerate. Hopefully with the next generation 1080p will be the new standard.

BS. I know no one with a 720p limited TV.

I just looked at Best Buy. Their list shows 405 1080p TVs and 181 720p. (as well as a few other in other resolutions)

You're just making shit up.

EDIT: Walmart has 128 1080p and 41 720p... again 3x the number.

It's true man, look it up.  In fact, until mid-2010, not even 50% of US households owned even one HDTV set.  Most of which were/ still are 720p, as it's far cheaper and therefore more mass-market friendly.  1080p sets are typically for high-income earners and are still relatively new to most people.  Bear in mind people like us who are tech junkies find all of this baffling, but just remember that 50% of the population doesn't even know the name of the Vice President, let alone the difference between a 720p or 1080p TV.  All they see is 'HD' and the lower price.

Well I have no interest in the game but it does have really nice audio.

That was really good. I really don't care if games are 720p or 1080p I want them to be in 60fps (this will depend on the game of course). 

Nope. Not while your previous statement is still true -- developers will continue "pushing the limits" of the hardware, settling for 720p or sub-720p so as not to sacrifice looks. And I wouldn't be surprised if the framerate continues to be shit next gen for the same reason. I don't know where you get the idea that the framerate isn't being compromised this gen -- maybe it's steady in sports games and racing games, but the slowdown is pretty bad in a lot of other games.

If you factor in the Amish maybe. At least among people that have any interest in video games, 1080p is the norm.

TV selection at various online retailers broken down by resolution.

Best Buy:
1080 - 384
720 - 155

Wal-Mart:
1080 - 128
720 - 41

HHGregg:
1080 - 126
720 - 26

NewEgg:
1080 - 298
720 - 82

Amazon:
1080 - 681
720 - 232

Frys:
1080 - 313
720 - 91

Tiger Direct:
1080 - 290
720 - 42

A few years, 720p TV's were likely the largest volume seller but that's certainly not the case today. However, it's possible that most in use are still 720p but no way to know outside of some questionable Nielsen type data.

LOLOL!! Truth!

It's an ongoing transition.  The fact that so many of these retailers are now offering so many 1080p models and phasing out 720s just proves my point that at present most people still do not yet own 1080p sets.  Most people are lower-middle class, they don't have $750 - $1000 to spend on a giant HDTV set with full 1080p.  We're talking about a population that still predominantly uses DVDs, which are standard-def.  Outside of the bubble we're in, as tech-junkies or whatever you wanna call it, most people don't know or care about 1080p, let alone want to pay for it.