But remember - The OP has a TV that displays at 720p. So, what ever you wind up having the Dish receiver output as, it will wind up as 720p, just how many times does the image need to be processed before it is displayed? And, what does a better job of processing, too?
Let's say you're watching a game on ESPN, which is 720p source material. You set the receiver to output at 1080i. So, the dish box upscales and re-interlaces the image to 1080i, outputs it to the TV, which then downscales and deinterlaces the image back to 720p. Native passthrough would be a nice feature, but lacking that, my vote is to minimize the number of times the image gets processed. So, 720p for the output.
And yes, people do get far too hung-up on resolution. If you want a good looking picture, worry more about getting the contrast ratio and color decoding dialed in, resolution plays a smaller roll in overall picture quality than these two items.