Yes, but that will just confuse matters even more. Take Sony LCD TVs for example: 1366 x 768. That's in between 720 and 1080.
No matter what you send it, it will scale it to 1366 x 768. So if you have the DVD player scale 480p to 720p, it will be scaled again to 1366 x 768 (768p? - who knows, its not an atsc standard resolution).
I would just leave the dvd resolution alone (ie., turn upscaling OFF on the dvd player) and let the TV do whatever it needs to do to scale to its native resolution.
However, if the tv uses one of the atsc standard resolutions, like 720p, then the issue becomes: which does a better job of scaling from 480p to 720p - the dvd player or the tv? Yet another wrinkle would be if you set the dvd player to scale from 480p to 1080i and the tv then scales it back to 720p and that looks better than having the dvd player doing the scaling to the tv's native resolution (720p) so the tv doesn't have to touch it.
So many variables and each tv is different. That's why I think the best answer is simply experiment and see which you prefer.