Bud you are clearly on your own right now lol.  Here is how actual professionals refer to it:

http://www.tomshardware.com/reviews/gaming-graphics-card-review,3107-3.html

http://www.digitaltrends.com/computing/amd-reveals-150-radeon-r7-265-lowers-price-on-r7-260x/#!Aid9C

http://www.tweaktown.com/reviews/5917/visiontek-radeon-r7-260x-2gb-overclocked-video-card-review/index.html

If you don't consider it mid range that is fine, but don't act like you know better.  You are just elitest.  

It does.  For some reason DICE prefers Ultra in 900p at 60 fps instead of high in 1080p.  

Hell the Xbox One is essentially a 7770 in strength and that can even handle medium in 1080p with low AA.  But instead they went with High in 720p.

i tried bf4 on ps4 because of a friend and the game had no AA not even kidding

Look.  The game was clearly rushed on both builds.  It doesn't even really work to this day.  You can look at games all you want, but at the end of the day the hardware is the hardware.  InFamous comes out on Friday and it uses Supersampling while running in 1080p...

As with any developed for PC game, there is a degree of flexibility with regards to performance.

Since we're talking consoles, that flexibility is up to the developers to decide where the hardware resources they have available to run their apps should be best allocated.

Do we favor higher frame rates (fast moving, constantly refreshing backgrounds, quick camera movement, etc.)?

Do we favor higher resolution (exploration of environments or realistic visual direction, etc.)?

Do we favor computational intensive effects (more realistic VFX/particle effects, dynamic lighting, physics simulations, etc.) to create a different visual direction?

Off hand, I'll say that most developers will take the visual hit (effects, anti-aliasing, draw distances, etc.) before dropping frame rates to a degree that their game becomes unplayable or noticeably rough. Same goes for resolution not that it's a bad design call to prioritize realistic effects at the cost of native render resolution to a certain degree. But there's no point in shooting for realism if developers are left with a soft focus, blurry mess which would have to take art direction into account to make upscaled, lower resolution visuals to work.

The OP seems to be thinking along the lines that 8th gen game development will be working backwards as though developers will treat the PS4 like an upgradable PC, which it isn't. Console development works within a pre-set box of restrictions (some more restrictive than others) and good development is a matter of optimizing those resources for maximum performance and visuals. In short, do more with the same resources.

Everyone knows and accepts that good developers are able to use those resources more and more efficiently over time and since the 7th gen, we've seen console operating systems streamline to free up more resources for game engines which aids developers.

I think Xbox One pretty much guarantees that every multiplat on PS4 will be above 720p. Think about it, if a game would be 720p with 30 fps on PS4, what would the devs do for Xbox One? 480p? 15 fps? I don't think so. Sure they could downgrade graphical fidelity, but that would be way too obvious, as you would really notice such differences unlike with resolution which is noticed only by fairly few people (not saying there is no difference). So I think they will just use the X1 as a baseline and push the resolution and/or framerate for PS4 a little.

About first party titles, I have no idea. I can't imagine Naughty Dog going with anything less than 1080p because those guys are the masters of hardware. Other than that, who knows what might happen. But a 720p first party title on PS4 would have to bring some serious graphics to the table to justify the low resolution.

Short answer: if a developer wants to prioritize visual effects at the cost of resolution, they'll do 720p native render and rely upon upscaling to fool the untrained eye.

Scenario 2: a developer simply doesn't care about performance and does a quick and dirty port that results in 720p native render regardless of effects. This is the equivalent of taking a DVD film master and republishing it on BD without re-mastering the video at higher res.

There is no point in increasing detail when you cannot see it. In 720p most of the detail is lost.

The PS4 has only had one sub-1080p game (other people's words, not mine). What the hell are you on about?

http://imgur.com/a/FMfgV

I haven't seen my friend's 7870 touch this. Not bad for a launch window game.

No, I'm telling you what the question will be.

I'm not interested in your question. Your question is spin.