The riots that have broken out over the PS3 are utter stupidity. Ooooh, sharper graphics. Now every jerky motion and unsmooth movemnt will be crystal clear. I happen to be thinking about the sports games at the moment. Less resolution I think would be better unless the movement looks far more human like and AI is increased drastically. That way you wouldn't see all the flaws and your mind would "fill in" the blurry spots with more realistic details. A hockey player should not take a huge slapshot on a wraparound from just in front of the goal crease!
Sorry but I think HD is a bunch of overhyped crap that requires noisy murky tv sets to watch on. I want to see a moving picture, not a bunch of tiny flashing dots. Just because HD can capture every individual blade of grass doesn't mean you should see it. Apparently ESPN has never heard of Depth of Field. But at least they know how to FAKE vibrant colors and picture by crushing the blacks and cranking up the saturation of an image that likely was pretty gray to begin with.
I think Nintendo is very smart to build a console based on ideas rather than get caught up in tech wars.