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whoa there

The 1080p capability has been there since Day 1 of HDMI. Most manufacturers cheaped out and bought HDMI chips that were only capable of 720p/1080i max. The chip that is 1080p capable adds $3.50 to the cost. Besides blaming the cheap-ass manufacturers, I also blame Silicon Image for even allowing a cheap/stripped version to be sold in the first place.

As to the debate that you're talking about, it's called ICT (Image Constraint Token). This "flag" in the stream tells the player to output a lower resolution signal (ie; 960x540) than the formats are currently capable of showing via the analog output (1920x1080i). This is different than the restriction set by AACS (the encryption scheme for the next gen formats) which says "no way" to 1080p output via analog. HDMI allows 1080p -- provided the manufacturer is using a 1080p HDMI chip.

There is an agreement among the studios that the ICT "flag" will not be used on discs until about 2010.

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