The 768p pic looks much better IMO.
Can't stand jaggies, so I don't mind the blur.

Honestly near-HD resolutions look fine, with AA on. I doubt many people can really notice the difference, unless their TV is monstrous. The X360's GPU was designed to clean up on sub-HD, at an affordable price, which was really pretty dang good at the time it released.

I'm not trying to fanboy-out here, but most of the "true 720p" games this gen will exclusive to the PS3, likely thanks to the divided memory architecture, and the lack of the 360 architectural hurdle mentioned in the article.

Honestly, the unified memory architecture of the 360, and awesome, albeit sub-HD, performance of the Xenos do very nicely in lieu of true 720p. I would even say that many games (incl. Tekken 6, apparently) look better at sub-HD resolutions, with fancier texture ops, and AA, than games at true 720p do, without those things.

Next gen will be true 720p at a minimum for cross-plat titles, and 1080p exclusives. I know we have a few 1080p exclusives this gen, but they're all in "simpleland", as far as the rendering pipeline goes... no character animation work, no vertex skinning, linear tracks/paths with pre-computed culling... I'm looking at you racing games, rail shooters, and space sims. HD is still just coming over the horizon, really.

576p on a big screen especially with 1080p (it will be less blurry in 1366x768 screens) resolution will look like a N64 game (super soft and blurred image)
the same exact problem exists in the ps3 verision of GTA IV. the xbox version looks sharper because is running on a resolution closer to the screen's native one.

Last part of the analyse : http://www.eurogamer.net/articles/digitalfoundry-tekken6-resolution-game-blog-post

PS3 wins even with its sub-HD resolution.