Well....
Games in 720p look
very good.
BD in 720p, I'm not so sure. There's only a marginal improvement in resolution over 576i or 480i DVD, but the big downer is the terrible stutter. I am admittedly used to super smooth 24 fps (from proper pull down), but this stutter is really bad (almost unwatchable). I guess I'll need a 1080p plasma that can handle 24 Hz input (the PS3 will not send 24 fps via component).
These extreme closeups compare Spiderman 3 NTSC DVD (480i, so worse resolution than regular PAL DVD) with Spiderman 3 BD @ 720p:
s31_480.jpg
s31_720.jpg
s32_480.jpg
s32_720.jpg