The thing about 1080p is that 99% of people only care because it's a quantifiable metric, like megapixels in a camera, or number of blades on a disposable razor.
Vudu HDX is the only product I know of that streams 1080p content at any kind of reasonable bitrate. In all other cases, 720p will actually look considerably better because you don't have to make as many compromises in video & audio quality to stream.
1080p would be nice for streaming video locally, but I think Apple's correctly guessed that the vast majority of their target audience do not have loads of 1080p content ready to stream locally.
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