Sounds like an excuse, even with todays consoles on todays televisions you can get a much better image by calibrating your telly properly and using proper cabling.
For example too much sharpness and contrast (often the factory default setting) increases the jaggie visibility and shimmering on current games making them, and also TV programs and DVD's, look grainy.
By using composite cables, upping the contrast and sharpness (like many who don't know better do) you can make even the best looking current gen game look like sh*t.
In fact, I believe most current consoles are connected with the standard, included composite cable... imagine how many people are viewing their PS2's, Gamecubes and xboxes through this kind of setup. But do they post in these forums complaining the bad visual quality of their games, I don't think many do.
Crappy tv's and wrong settings that degrade quality are nothing new this coming gen. Ok, maybe there is more room for error in calibrating the new HD sets for various inputs, but if proper cabling is used the internal scalers should do an adequate job.