Games in the future are possibly going to support 1080p. Some already do.
As for the TV makeing the image look better. The only upscaleing that I know of, is use on DVDs, and that's on the DVD player itself.
a DVD is below 480p but above 480i. You can upscale it to 480p And make it look better, and you can actually upscale it even further, and it looks even slightly better. But overall the best you can go is to 480p. (anything higher and you dont really notice a diffrence)
Component? I actually wish I could add noise between my Wii and my set. It would loose some detail, and make text harder to read, but the lines wont be as jaggy. (meaning less headaches. I dont know why, but almost every game from my Wii gives me headaches... only Red Steel gives me migranes)
For those of you who dont understand HDTV.
1080p is NOT recommended for any set smaller than 40inches.
Why? Because unless you sit ontop of the screen, you wont be able to tell the diffrence... I can barely tell it on my 40inch. I actually wish I saved 400$ and got the 720p version of it. Coulda bought a 360 with that... >.> Or even better. a PSP. ;D
And if your buying a Set bigger than 40 inches, chances are you dont care about cost, and you'll end up getting something like 70inches. Then I would HIGHLY recommend 1080p.
However, the PS3's processor streamlines quite much like the PS2. So it will never be 100% optimized. and One REALLY nice thing about the CPU on the PS3... to add power... just add another Cell processor. or another... or another... or hell. Add 8 cell processors to the PS3... to 8x it's power. And it would only take a few thousand extra lines of code to use them.
;) Once nice thing about the Cell.
The graphics card, is standard and can easily be HIGHLY upgraded, and yet agian, almost no diffrence for the dev company.
Kinda like the GC>Wii. the Wii is already optimized. because the Wii is just a powerful Cube. (with weird controls and lots of other new features) (not bad weird, new weird)
I give up on bashing the Wii. You people are like talking to my brother.
AMD is so much better than Intel. Pfft.
On that point. Anyone think AMD is better than intel right now? Raise your hand and try to explain why. :)