I read the article, and I think the section on Blu-Ray wasn't very well written. Not very clear, at any rate. It starts off by saying "Blu-Ray will display in 1080i". But the article itself is talking about PS3's limitations with 1080i displays. Since 1080p displays can render practically every resolution known to man, it's a non-issue. It did later say that the maximum PS3 that the PS3 could play Blu-Ray at was 1080p. Talk about a typo.. I think he meant "resolution". But it looks like the system will still spit out 1080p Blu-Ray if you've got a 1080p TV.
The problem comes if you have a 720p TV. Your only choices are 1080i and 480p. You have do go through this huge rigamarole to force the PS3 to spit out a 720p signal.
The core problem, it seems, has to do with the fact that the PS3 has no scaler. It has issues with both up- and down-scaling, which is quite disappointing, especially since their competition, whom Sony has always been all "They don't have real HD, we have real HD" about, can support any and all resolutions, smoothly upscaling and downscaling without any problems.
