I don't think that the 720 < 900 < 1080 comparisons will die away this generation. In fact I think that the push to 1080, certainly on Sonys behalf, is going to make people realise just how good things can look on their 40"+ TV, especially at native resolution.
Just how good upscaled images are going to look on average, none calibrated, TV's we don't know yet. All we have seen are off screens and PR shots.
Decent surround setups are probably harder to find than HDTV's in a regular living room. And though surround sound is important, and there have been some cracking uses on the PS3, I don't think it's going to divert the course of conversation away from the eny candy.