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For a noticeable difference to say 360 games running in 720p/1080i you may well need a monster tv to fully appreciate the difference.
I would hazzard a guess that PS3 games (be it running in 720 or 1080p) and 360 games (720p/1080i) will look pretty similar on 20/30" and possibly 40" tv's.
Have just found it on Amazon and it states Component video input (YPbPr) accepting 720P & 1080i input... Is 1080i much different to 1080p? I am getting a 360 for Xmas and can't wait
exaclty as mubunny says, just cause it's in 1080 doesn't mean it's 1080 content. the xbox360 i have is running in 1080i and looks identical to 720....thats gears of war too. 1080 will be goodwith appropriate content...