720p vs 1080p in a non Full HD TV

I know the answer may seem obvious, but I've been running both GT5 and GT6 up until recently in 1080p which was then downgraded by the TV (?) and only recently I changed that to 720p and I thing I now experience great framerate but lower quality graphics with lots of aliasing. Is it only my idea?

Another thing is that my PS3 in automatic display setup gives me the option to feed 1080p (in a non full HD TV?!?) through the HDMI and I had to manually deselect this resolution to choose 720p
 
The decision is entirely yours. I used to play in 1080p, but the framerate started to stutter so badly that I downgraded to 720p. It looks ugly and the aliasing is terrible, but at least the framerate is smooth which is the most graphically/visually important thing in a racer.
 
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