No.
You are confusing "HDCP over single-link DVI" mode of a Dual-Link DVI port with a "single-link DVI" port.
All that matters is that, when playing back a Blu-ray or HD-DVD movie and outputting the video feed through a "Dual-Link DVI" port on every 8800, it will revert back to single-link DVI in order to become HDCP-compatible. It does not apply in any other content (desktop, games, DVD, etc).
And, think about it:
Why would you need to upscale the video in the graphics card itself ?
All HD movies are encoded in 1920 x 1080 progressive scan, a 30" LCD computer monitor was probably very far behind on AACS LA's list of priorities and near-to-medium term mass consumption displays. Every time you upscale, you lose quality, whether it's the GPU or the display doing it. Are you willing to do that on a native 1080p HD source ?
They never intended to promote a 2560 x 1600 resolution since, first it's a PC ratio (16:10), second the cost of authoring and local processing is likely much higher, and third there's no consumer LCD/Plasma/DLP/RPTV television capable of displaying in such huge detail anyway...