Well I was thinking that if $onĄ and M$ were gonna make HD at 1080p and 1080i standard, along with all the extra shaders and anti-aliasing to create the snazzy fx, the harware they will have to mass produce to run it all is bound to be very expensive. Its a task of trying to reduce next-gen PC standard hardware into a cheap living room console about 5 times cheaper, and someone will have to bear the cost at some point.
Cost cuts here mean developers may not be given enough power to work with (however many FLOPS they promise!), and that means skimping on game quality. Blu-ray will have no problems storing it all, but again apparently the cost of manufacturers changing to the blu-ray production process is also gonna be expensive. Add to that the fact they expect you to go and buy an HDTV in the near future...
Just seems theres a lot of money involved in the transition to 'true HD' for consoles atm, and I dont blame Nintendo for choosing not to get involved at this point. But $onĄ and M$ reckon they've got enough! Just have to wait and see.
EDIT: Sry, just realised i've made the same point 3 times, haha! :dennis: