I would take better resolution or better framerate in 720p over those two things being worse in 1080p any day. Then again I don't have a 1080p TV, but even if I had it I doubt I would think any different. Basically, if a game can look exactly like developers wanted, and run smoothly in 1080p - great. If it can't, it's resolution drop time before anything else.
As for 1080p game support on PS3, I just remembered that Sony's NBA game also runs in 1080 (and solid 60FPS too I think), also several PSN games.
To be honest, I think the 1080p TV owners got more than most reasonable people expected from PS3 this early in the game. RR7, GTHD and both NBA games all look pretty damn good, and 3 out of those 4 run at a pretty much perfect 60FPS to boot.