Another factor that plays into this is that there are a lot of HDTVs that don't handle 720p well. There was a report in The Perfect Vision a few months back, that claimed several HDTVs that have a native resolution of 1080i, are actually not applying a complex upscale/conversion to 720p in order to display it in 1080i. Instead, they are simply throwing away every 4th line and then doubling it. Effectively reducing a 720p image to a 540p image and then interlacing it to 1080i.
This method is far cheaper to employ as the conversion can be done very quickly, with lower cost processing chips.
I'm almost certain that one of the items tested was a Dish HD receiver and that it was shown that this is exactly what was happening in the receiver when one had it set to output at 1080i. I'll try to find this again.
Now if Dish knows this, then they know they would be using a lot of bandwidth to broadcast in 720p that would in turn then be stripped out by their own receivers in a large number of homes. Thus they might think it would be ridiculous to go down that path.
This method is far cheaper to employ as the conversion can be done very quickly, with lower cost processing chips.
I'm almost certain that one of the items tested was a Dish HD receiver and that it was shown that this is exactly what was happening in the receiver when one had it set to output at 1080i. I'll try to find this again.
Now if Dish knows this, then they know they would be using a lot of bandwidth to broadcast in 720p that would in turn then be stripped out by their own receivers in a large number of homes. Thus they might think it would be ridiculous to go down that path.