Do this experiment. Take an image at 720x480 and resize it to 1920x1080. Does it look good to you?

No matter how people spin it, upscaling will not look better or 'comparable' to HD formats (BD/HDDVD). You're just letting the upscaling player fill up information that's not there in the first place.

If you're a visual person and need visual confirmation, just check out the following website. http://www.cornbread.org/FOTRCompare/index.html

Of course. There's why there's a market for DVD Upscaling players. They come with better upscaling hardwares.

What I'm saying is, no matter how good the upscaling hardware is, the image quality won't be AS GOOD or BETTER than the native HD counterpart. It just won't happen.