Anyway funny how now a game that in essence is using 720p objects-textures is now seen as one of the best looking games.
VFX not disagreeing with you as it is a perception thing and many agree with you, rather that technically is it really one of the best looking games due to its native resolution being upscaled (ok temperal reconstruction in the render engine),
Cheers
Resolution is only one of very many things that comprise what makes a title graphically impressive. Native resolution is always welcomed, but if they can do more with a lower resolution and still make it look good, then it's not so bad.
On TV resolution is obviously far less important than on a computer monitor as the distance and pixels per arc minute (more pixels per arc minute for a TV at typical living room distances making it more difficult to perceive each individual pixel).
So on PC the lower resolution would be easier to spot in motion but it isn't much different than games using full screen motion blur when the camera moves. Either way you lose some definition during camera movements. For traditional full screen motion blur you must use valuable compute resources to attain that effect. Granted it's visually slightly different. But in either case you are losing definition.
When there is no motion like when you are focusing on something the reconstruction works to make things nice and sharp. It's a compromise that mostly works. More important on TV's where the lower resolution is going to be less noticeable, and what the game was targeted at.
They can then use that to bolster other effects which can have a far larger impact on the perceived IQ. Lighting still needs lots of work to become believable in such a way that you aren't constantly thinking about how it doesn't look real. Hence their focus on lighting. For most people it's the right choice, as it makes the whole far greater than if they focused on native resolution but sacrificed lighting and other effects.
Also to note that aliasing is one of the major sticking points for low resolution, but they addressed that by using 4xMSAA which greatly reduces the negative impact of a lower resolution (hell of any resolution). I'd take a very well AA'd lower resolution over a higher resolution with no AA or subpar AA any day of the week.
TL: DR - resolution is important, but it's only one part of the graphics IQ pie and not even the biggest part.
Regards,
SB