Devs will always balance resolution vs pixel quality, it's not like MS engineers are allowing anything, just having fun with that sentence really. Obviously this is the case but why say it that way since my 2nd part of my OR statement comes to mind very quickly. We don't know what Sony has for CPU resources and we don't know that either system is going to be CPU limited in any case. Both will end up balanced depending on the game but at different levels.
They should have gotten rid of the We Allow It cause it's whiffs of PR.
Though early on in the 360 the devs (most devs as some exclusive or important games were allow to ignore requirements) devs
had to run games at 720P, which means that they had to lower the pixel quality.
Now what they say is that they think it is wiser to let the devs decide the best
compromise it is a departure from their previous policies.
Now it is unknown what most devs will do, be it on the xb1 or the ps4, I agree. But you post sounds a lot like "that won't ever happen on the ps4 so they should better stfu", that is unknown.
The PS4 has bigger GPU and lot of bandwidth so they could do lesser compromise (or not the same) but that different from they won't ever have to make compromise.
Look at some benchmarks in the PC world, it is pretty easy to spot the impact of CPU on perfs, I would bet both will be CPU limited quite often even the XB1 with its slightly faster CPU.
Shortly to put it bluntly I believe that your post is a bit trollish, MSFT engineers are giving lots information, more to come, they don't claim hardware superiority or dismiss Sony work, they are not throwing flame bait around.
It clearly won't have an impact on most people on the web but I do appreciate that they are doing it even though I may not buy a console this gen even less an expensive one.
What they are saying is pretty clear, the contest is clear too, there is not much to argue about.