There are diminishing returns. It's not a linear quality.

I don't need anything over 1080p and I'm frankly fine with 720p if it means the framerate's better.

But it's not irrelevant. The difference between 1080p and 480p is a pretty big deal.

Far from overrated. I feel its underated. My eye sight isnt the best anymore, but when playing in glorious 4k, my eyes feel relaxed and less strained.
Nothing beats playing a great game at high clarity.

Well obviously, but none of the current consoles go much lower than 720p.

640p, or 1152x640 to be exact.

Considering my best gaming experiences are on PSVR, both are over rated! Although last gen, GTA4 on ps3 on a projector was a bit rough. There's a sweet spot depending on the level of detail in the game.

Resolution for sure especially when its hardware that held back games.

https://kotaku.com/what-nintendo-ds-games-look-like-in-high-res-1701086917

Nope, people who say they prefer the other are just ones who own a platform which is incapable of both.

Definitely prefer better graphics. When I used to dream about the next Smash game on the Switch, before E3 that is, I remember wanting much improved graphics even if it meant going down to 900p or even 720p. What we got instead was much improved graphics at 1080p, lol. But yeah, I'm not much of a resolution guy. Only just began to be mildly bothered by 720p recently.

Some times when I look at things in 720p, mainly videos, the blurry text can bother me and prompt me to change the settings to a higher resolution. But that's different from gaming, since a lower resolution of a video wouldn't produce a native image, which can cause it to be more blurry.
When it comes to games 720p is usually just fine. And anything beyond 1080p is unnecessary to me at this point.

There is such a thing as diminishing returns and post processing effects matter. I find 720p still acceptable, 1080p is more ideal, but north of that becomes less important.

As an Xbox One owner I gladly trade resolution/super sampling for higher graphics settings and performance. For example, I was playing the Battlefield V campaign and the resolution looks fantastic, performance feels rock solid, but the LOD settings and pop in is disappointing. I wish it had a more aggressive dynamic resolution in exchange for better graphics settings.