There are already people providing true HD content, and some of it looks pretty sad on Dish. (See HDNet for example.)
1 - People who have a normal sized 1080p display cannot see any difference between that and a 720p display, according to mathematics:
http://www.carltonbale.com/wp-content/uploads/resolution_chart.png
I don't think there's anything even slightly unreasonable about demanding that 1080-line channels be the full 1920 pixels wide. There are lots of affordable displays capable of displaying it these days, and I can certainly tell the difference.
A good bit rate is whatever rate that doesn't lead to obviously visible compression artifacts most of the time, which disqualifies whatever they're running right now on, for example, HDNET.
Where is the current E* bit rate chart.?
Of course there is true HD content out there but there is A LOT of upconverted crap being passed as "HD" by the programmers.
It's like the old Second City TV show routine with the hillbillies reviewing movies: "Hoo-Eee; dat blowed up good!" When I see an explosion on HDNet or HDNet Movies now, it doesn't "blowed-up good", it turns into a pixellated mess. Before Dish trimmed the bitrate on these channels, "stuff blowed-up good". It's a shame.