Duċk;2486129
IIRC, the PS3 doesn't have a scaler like a 360, and so supposedly because of this, it couldn't upscale to 1080i.
Graphic Processors, like those in the PS3 and in PCs are scalers. They act just like they do in a PC. Go to your resolution settings on your PC and you can change them to whatever is supported by that processor. The Nvidia processor in the PS3 can scale to any number of differnent resolutions, perhaps even greater than 1920x1080 as other high-end processors now can, and of course they can scale down to any number of different configurations.
If there is a problem with the PS3 scaling games rendered in 720p to 1080i, then it certainly sounds like a software glitch that should be easily fixed, although it may be a more complicated issue with the interlacer, and not the scaler.
Of course, those impacted by this make up a very small percentage of HDTV users. Anyone with a fixed pixel HD displays
(LCD, DLP, LCoS[SXRD,D-ILA], Plasma), or CRT with a video processor, will be able to accept the 720p signal from the PS3, and for those with 1920x1080 displays, it will then be scaled by your display to 1920x1080, or whatever the maximum native resolution of the display.
Seriously, not only does this effect a very small percentage of probable users, and not only is it easily fixed using an external processor, but the PS3's processor does have the capability of doing this as well and will likely be fixed via a firmware update.
So there is no reason at all to suggest that anyone with an old CRT will be forced to play 720p games at 480, as they can fix it even without Sony making any changes... although i suspect Sony will address this issue any way.
In other words, if you are one of the few with a CRT and no processor, don't let it keep you up at night. Solutions are available without having to rush out and buy a new TV. 👍
(Although, with the rapid development of video technology over the last few years, to get the most out of the PS3, you may be much better off investing in the latest display technology.)