Nice video, but that's not actually from nintendo to show to the presses how awesome their game looks XD
If you're looking for a prior example, I believe Uncharted 2 and Killzone 2 were both demoed on a theater screen.
I don't see why people want to complain about sub HD resolution. It's not the first title to do that, and has a unique presentation. People should be happy with the developers' choices. The developers should be given the freedom to explore, and they will always try to make the best decision for their games (e.g., give the game a unique look).