Simple : developers are lazy . Yes , I know that Lair was bad , but graphically it was a dream ... so yeah , they are just lazy :?

 When I lock a game (as stated, we'll use counterstrike) at 30 fps, and then lock it at 60 fps, I notice an immense difference.  The eye will notice a difference up until the 50-60fps range, but after that, there is no difference.

 Or the PS3 was poorly designed.

erm pal it depends on the tv first and foremost if it aint 1080p compatible it wont do it. p.s btw not sure if this is relevant but wanted to say i have a 1080p sharp aquos 37inch (i didnt go out for ages lol saving) virtua fighter 5 says 1080p but it would only run in 720p. then i read that you could set stipulations for your tv, so i turned off 720p and 1080i and hey presto it worked.
1080p games that i know of:
Virtua Fighter 5
Virtua Tennis 3
Gt hd (gt5 apparently as well)
Ninja Gaiden Sigma
Nba

Also the sze of the disc comes into account for hd. Kojima says that even low forms of hd require a lot of space, so hopefully that 100gb blu ray disc that hitatchi r making will get sum more 1080p games out. Thanks

Yes, it is very clear that regular people can easily tell the difference between 30fps and 60fps.  That's a fact and a few will dispute it, but no one with much experience.

However, much more important than the visuals are the controls.  If you take a second to think about the rendering pipeline you'll realize that you cannot affect a buffered frame nor the frame currently being rendered, so input has an average of 1.5x frame latency in the very best case or much higher in the worst case (Madden '08 on the PS3 has very bad responsiveness).  So the response latency in a 30fps game is about 33-66ms in the best case -- certainly noticable.  At 60fps, it would be 16-33ms which feels significantly better, even if you don't think you'd notice the 1/30th to 1/15th of a second latency (again, best case) for 30fps.

Well, that depends on the game... A game like MGS4 which will probably have a lot of cutscenes would need a lot of space, because pre-rendered video content takes up a lot of space... But if your game is more about real-time rendering, you just need the space for storing the models, textures, etc. which don't require much space.

And to go even farther with my argument, procedural generation requires even less space and can generate graphics in any desired resolution (RAM/CPU/GPU become the bottleneck much earlier than disc space would).

If you want proof, there are tons of PC games capable of running at resolutions better than 1080p. Many of them fit perfectly in a single DVD.

The problem  with the thought of PC and DVD size is that it really depends on how the models and textures are made.  Vanguard (the MMO) had over 16GB of model data for the world, mobs, characters and items.  It would be very challenging to create an algorithm to dynamically create all those assests.  Textures however are a different monster.  The biggest size in most common games is starting to become the models, not the textures.  The more detailed the model, the less detailed the textures have to be and you don't need to do "tricks" like bump mapping and special shading.  It just requires more horespower and bandwidth.

The basic deal between 720p and 1080p is this: they look the same on HDTV screens smaller than 40 inches, with one important qualification: if you plan on using your screen as a laptop display, as I do, you will notice the difference - e.g. 1080p does look sharper than 720p on my 1080p Sharp Aquos TV. For gaming, though, there's practically no difference.

On really large screens, 1080p looks better, so you'd want to go with that. It just depends on what kind of HDTV you have, or plan on getting.

GT5 60fps at 1080p runs perfect.

PS3 is far more powerful only fanboys deny that, now tapping into that power is imo only being done by a handful of developers working on the PS3! thus most PS3 360 games are very similar. I don't get whats so hard about accepting that PS3 is superior to the 360, Sony is a hardware corp you really think they would have a hard time out doing Microsoft in hardware design ? Lets get real people.