Honestly, 1080i or 1080p is not noticeable if you have a normal 40 inch LCD or Plasma tv, it is only noticeable if you're using like 46 inches and above, for normal sized LCDs, 720P is good enough. Don't take my word for it, try asking a noob to tell you the difference between 720p, 1080i, 1080p on a 32 inch Sony Bravia LCD tv, they couldn't tell a difference, if you have rear projection tv with the size of 100 inches and above, then that's different. So, it might be an overkill to have 1080p for a 32 inch model but of course, there are companies going to release 1080p native mode for smaller models next year but what's the point if our eyes can't notice the difference and for XBOX 360's case, when you bump the resolution to 1080i and 1080p, you'll experience some performance hits, I guess the console wasn't made to render games at full HD, with 512mb of shared memory, what can it do to render games at such resolutions, normal high end pc cards have a dedicated 512mb and above for their graphic cards excluding the system ram in our rig. I guess nowadays most people have around 1GB of system ram. For pcs, running at such high resolutions is a piece of cake but XBOX 360 is a console, not a pc so it's forgiveable if it starts to max out at 720p resolutions. For games, framerates are more important than resolution, I wouldn't want to play NFS Carbon at 1080p if the framerates are choppy.