It's a problem if you have a 1080i-only set, in that you're limited to 480p if the game has no 1080p framebuffer support. It's also a problem if you have a cheapo set with a crappy, laggy internal scaler. We're really going over old ground here but it is patently obvious that having an internal scaler that works on all games is clearly a desirable thing to have and if omitting is a deliberate design decision by Sony, it is somewhat short-sighted.
So the consequences of PS3's gimbed scaler exist mostly for old TV sets, whereas the 360 can upscale on any TV set accordingly for best possible image quality, right?
Because I havent noticed any resolution issues on any modern HD TV I ve seen. Both the 360 and PS3 performed similarly.