In the grand scheme of things, the average gamer—and I don't mean folks who are reading this right now—can't tell the difference between 720p and 1080p. Thank God, because according to Microsoft's Scott Henson, director of game technology, pure 1080p content is very, very hard to produce and any hardware manufacturer who is claiming to that their console or PC will produce it is a liar. A fat, huge liar.
Considering most current "HD" games are 720p at best, it's no surprising that MS is harshing on the future gaming buzz. But do they have to call people names like that?
The interview also posits on the possibility of a Blu-Ray add-on, but little else.