Yeah, I was wrong this time. My HDTV and my 360 can upscale 720p games to 1080p while my PS3 doesn't. As I remember right, the PS3 can only upscale movies to 1080p. According to its 360 game list on the thread you linked, some have 4xAA, some have 2xAA and few have no anti-aliasing. The PS3 has most games run with no anti-aliasing. As you said before, upscaling doesn't bring enough detail and you're right. Seriously, I don't know much about electronics as you do, but thanks for the lecture.
@Sureboss
Well, we have to wait and see. I always wanted the new Race Driver: Grid installment.