Scott - all 1080p sets made today will upscale a lower resolution signal to 1080P - then you have the 4k sets which take it a notch higher. Some do this better than others, the key test or point of failure is usually the deinterlacing of 1080i signals. I am from the camp of not having the receiver touch anything in regards to the signal. I think Pioneer with their Elite line (until a few generations ago) did it right by just providing a straight path with no processing capability. Receivers and video processing to me is a marketing thing and highly overrated. If someone buys a receiver based on that they are missing out on other more important things required of such a device - I would value power, sound and connections way before a video chip. DNice calibrated my VT60 and I am a DirecTV subscriber. The signal being sent to the display is native (not to insult you but not scaled by the DTV box, processing is off in my Denon 4311 too) which for HD is going to be mostly 720P or 1080i plus a few at 1080P, but the later I believe are their pay channels). My VT60 does a great job handling even SD to point (it looks better, but I can't watch it unless I am desperate) the more important variable is whether I am getting a good feed from my provider for the channel in question.
I have an Oppo 103 and previously a 93. I think the 103 does a nice job working with streaming from Netflix,Vudu, etc. (I have the Roku stick as well as the native apps), but I do not see enough benefits with other material to warrant the steps of using it for anything else besides playing blu's and my SACD/DVD-A collection.
P.S. Video processing tests are included with nearly every pro review of a display. There is no sub menu on the VT60 I am aware of or should I say discovered.
Panasonic 60VT60 (cal by DNice)
Denon 5200 w/ Outlaw 2200 Amps (3)
Ascend Acoustics Sierra 2s F/R & Horizon w/ RAAL Center; Sierra 1s Surrounds; HTM-200s Heights and PSB S5 Rear Surrounds; Dual SVS subs
Oppo 103; Onkyo HD-DVD; Apple TV & Roku Stick