I'm wondering why DVD upscaling is even really in the discussion? I mean over time it's a format that is going to die, even TV shows are being released in BR.
And I've watched DVDs on my PS3 on my 42" set and while it is unquestionably not the same as a BR disc it's not objectionable to me. I'm pretty happy with how it upscales lossy downloaded files as well, certainly way better than my old D-link media server ever did. Perhaps I'm just not that picky about video quality? I do wish they'd get cracking on the whole Netflix streaming option.