Brewer4 I can understand why you might be upset and if your HDTVs cannot accept a 720p signal then I applogize for upsetting you. But there still seems to be confusion over weather a HDTV can use a 720p signal or not. In the last two years (2005 & 2006)ALL major manufacturers have supported either upconverting 720p to native 1080i and 1080p sets or downconverting 1080i to native 720p sets. Manufacturers that have been supporting this are, Sony, Panasonic, Pioneer, Samsung, Hitachi, Toshiba, Mitsubshi. These are the major players.
With the HDTV signal the FCC has now mandated that all sets be able to receive both 720p and 1080i as either a native or a converted signal. Your set does not have to display 720p or 1080i to comply -- it only has to be able to convert the signal to the native resolution of your monitor. Some sets downconvert 1080i to 720p and some sets upconvert 720p to 1080i. Early adopters to the HDTV market (Prior to 2004) purchased sets that were CRT HD RPTVs that did indeed only accept 480i, 480p and 1080i. FOX, ABC and the FCC have changed that market forever.
The point I am trying to make here is HDTV does not have to display 720p to be able to receive a 720p signal and do something with it. I keep reading from posters who say their sets only do 480p and 1080i. Those are the native display resolutions. The majority of these sets (2004 and later) can receive other signals and either upconvert or downconvert to a native resolution.
I also want to say that if Sony can correct this problem they should and will. However, if the program running is checking to see if your HDTV can accept a 720p signal and if not is downrezzing the output of the software and this is the program software doing this and not the PS3 then whoever wrote that software is going to have to issue a patch before anything Sony does with the PS3 will work.
I can understand that those whose CRT HDTVs can not receive a 720p signal for converting at all will not be looking to play games on the PS3 till this is fixed. Nobody can blame them for this. I think that those publishing studios whose games do this might just be as responsible for the resolution downgrade as Sony is for the PS3 not coming out of the box and upconverting 720p games to 1080i. I hope this downrezzing problem can be resolved.