Do you really think Microsoft will develop a console that is crappier than current gen XBOX?!?! Don't think so!
I mean... The Xbox is like on par with the PS3 now.. Do you think the XBox 720 will be too???
That is not even remotely possible, considering none of the current consoles are even next gen! Neither console, XBOX 360 or PS3 has the power to run full detail games (let's just not mention here Wipeout HD and some other games) at full HD but only on 720p Res or even sub HD res and then upscaled to 720! Remember the Xbox does this job much better than PS3 because of the HANA/ANA scaler chip!