umm... and your tv
don't get me wrong. It is SO lame that sony doesn't upscale games, but a HD tv with only 2 resolution options and no upscaling is just as week IMHO
(the original xbox had the same issue though not to many games were over 480p)
and I'm still curious what you do about 720 tv signals
but man an HD CRT that must look frekkin' sweet!
Sure it is lame that it doesn't take a 720 signal, but it is an older set, and 1080i was the standard for CRT televisions, and there are many out there just like mine. It wasn't until plasmas and lcd's took off that 720 became important to support.
That being said...
If I did run into a device that would only feed a 720p signal, then I would just be out of luck, but as I said...
Every other HD device I own (Cable, Satellite, HD-DVD, Blu-ray...)does its own scaling. I do give the original Xbox a pass, as it wasn't really an HD system. Some games supported HD, but not the vast majority. I did indeed miss out on most Xbox HD games though.
So...
I really I don't have to do anything with 720 signals, because nothing I have run into other than the PS3 makes it an issue.
I find it extremely funny that the PS3's pre-launch hype anti Xbox propaganda was heavily touting the PS3's ability to do 1080p.
Yeah...
Right.

You have very little on the PS3 that does 1080p, and most of it doesn't even do 1080i. Where as the 360 will scale anything and everything to whatever resolution I choose, whether it be 720p, 1080i or p, or any number of assorted resolutions you find with a VGA cable.