Opps my bad, I've jsut read 'THE' article and it says that the xbox360 will most likely scale 720p up to 1080i Of course, it will upconvert the resolution better than your tv wouldm so I guess we should be fine.
I doubt that gaem devs or MS will ignor 1080i though. I meant, it's just not practical enough to just upconvert 720p to 1080i if the upconversion will be low quality. If it is a good upconversion, then I will be happy, but a native 1080i would be alot better if it provides better quality over what the upconversion looks like.