I'm fairly certain it's not AF, but a negative LOD bias that they employ at lower resolution to sharpen the details. Just think about the angles and mip maps for this scenario...
Yes, rendering more pixels will be more stressful than sub-pixel sampling (MSAA) in that whatever pixel shaders they are using are run per-pixel. Apparently the game is not particulary pixel processing limited. I would be interested to see how high they could go if they built the engine around the 360. The limited environments and characters does not convince me that tiling, and thus vertex processing, is a problem. :s
Hard to say. 1024x576 with 2xMSAA takes up more memory (and bandwidth) than 1365x768. On RSX 2xMSAA would have less Z-fillrate performance even, but... who knows. The only differences, of course, are pixel shading/vertex shading. *shrug*