I though PSvita maxed out at a lower res.

Not bad at all. 720p video on my 82" screen doesn't look at all that bad.

The size of the streaming have... if you try to stream a 720p video into a bandwidth that can't hold this much data you will have lag... so 544p will work better than 720p in terms of lag.

The other part is latency (ping) but the resolution does help to minimize the lag.

Play a YouTube video in 320p and 1080p in a low-end internet to see what I'm saying... the streaming is not fast enough so you have lag.

Ethomaz, don't try to tell me or explain to me anything regarding bandwidth, lag, ping or latency, I do this for living ;)

Ah, yes okay, that makes sense. Well, I think this may get a bit confusing for the average consumer... Sony's going to have a challenge ahead of them, marketing this properly, what with PS3, PS4, PS Vita, Vita TV, and the new Vita model all on the market simultaneously, plus all the possibilities and impossibilities concerning compatability between them.

I think it is a massive disappointment that it doesn't do 1080p. I can potentially understand it not doing it for gaming, but it should have it for things like Netflix.

As long it works over Internet, I don't care if its 544p, 720p or 1080p