Well, thats going to be up to you. Like I said, I don't doubt that games at 1080p will look great on a 1080p set. But, I've seen Blu-Ray and HD-DVD displayed on a 720p set right next to them on a 1080p set. And, you'd be very hard pressed to notice a whole lot of difference.
I must have much better vision then you then, as I can easily see a significant difference... as have the hundreds of others who have posted as such on the leading Home Theater forums like AVS and HTF… and as witnessed fist hand by the thousands of visitors to CES and CEDIA.
Ultimately, sure the 1080p material, be it HD movies or PS3 games will have that extra bit of detail.
Since when is having more than twice the number of pixels considered just an "extra bit"? Does a 500hp engine have an “extra bit” of horsepower missing from a 250hp engine? Or in the case of comparing 1080p Movies and PS3 games to DVD... thats like comparing a 600hp engine to a 100hp engine.
In fact, lets put it in perspective. SD DVD is capable of rendering a maximum of ~350,000 pixels per frame – significantly less if it isn’t anamorphic. HD video on Blu-ray and HD DVD renders just over 2 million pixels per frame. A 1920x1080 display is capable of rendering over 1 million more pixels than a 1280x720. These are not insignificant numbers. You are losing half the fine detail from what Blu-ray and HD DVD has to offer by displaying it on a 1280x720 display. That’s a significant loss.
And as for that misguided blog about the limitations of human eyesight, he has a great deal to learn about human vision, film process, and video reproduction. You don't even have to be a specialist in the field of Optometry to quickly realize that normal human vision is capable of seeing FAR more detail than a 60" 1920x1080 image from 6 feet away. Just look around the room... even the best 1920x1080p image doesn't compare to the fine detail of real life.
1080p (aka 2K) is definitely a much needed improvement over DVD, and even 720p, but there are very good reasons why manufacturers, studios, and commercial theaters are focusing on 4K resolution products
(cinematic cameras, scanners, and projectors).
Depending on the chip and process, 4K produces between 8 and 12 million pixels per frame! That is 4-6 times greater than even 1920x1080.
My expertise and passion is film (hence the name choice), and anyone who understands film will tell you that even 1920x1080 video doesn't match the detail captured by 35mm cinematic film. 1920x1080 video is hardly pushing the envelope on the limitation of human eyesight.
I suggest a visit to your local IMAX for a slight reality check. IMAX uses 70mm film which is estimated at being able to capture more detail than a comparative 12 mega pixel image (the best possible from a 4K camera).
In fact, even 4K video and 70mm film hasn't pushed the envelope on human vision. NHK has been working hard now for several years on developing UHDV
(Ultra High Definition Video - aka Super Hi-Vision). UHDV has a resolution of 7680×4320, which is 16 times greater than even 1920x1080 and is capable of capturing over 30 million pixels per frame - that's nearly 100 times more than standard DVD.
While 4K scanners, cameras, and projectors have been around for some time now, their use is still limited by their high costs and limited supply. This could easily change however over the coming years. UHDV on the other hand, despite their successful prototypes and demos, looks to be purely experimental at this point.
Getting back to what is truly relevant….
One more important thing to consider regarding these next-gen consoles
(certainly for those who have or expect to have 1920x1080 displays), is what games will actually be developed with native 1920x1080 resolutions.
PS3 has the capability of having their games developed with native 1920x1080 resolutions, but will the developers do it? This is a big difference than a game developed with 720p resolution, or even worse, 480p and then scaled up to 1080p. Because the XB360 is limited to 9G DVDs, I would be very surprised if the games are actually native 1920x1080, and instead are simply scaled to 1080i for output. After all, even with VC-1, a game in native 1920x1080 would eat through a 9G DVD in very short order!