Sorry for this seperate topic, but I wanted to stress that people saw this before just randomly updating their system.
In the old firmware, 720p had higher priority over 1080i. The new firmware update reverses this so 1080i has higher priority over 720p. The problem here is, if you play the following, this is what you'll get:
A game that only supports 720p, you'll get 720p
A game that supports up to 1080p, you'll get 1080i instead of 720p
Blu-Ray movie 1080i
If you try to disable the 1080i resolution to always get 720p, the problem is when you play Blu-Ray movies, you'll only get 480p.
This is a significant step backwards and before you update your system, be sure you know what kind of functionality change you'll be getting. I'm going to hold out for now till they fix this.