Yup. I commented on this same EE problem with their 1080i feed in this thread back during the NBA playoffs. It was so bad I actually watched all the games on WMUR out of Manchester since they were passing the 720p network feed raw. There was also an audio problem where they weren't accounting for the processing delay when converting the 720p to 1080i so audio was leading video by a very noticeable amount. You could tell if a shot hit or missed while it was still only halfway to the hoop!
I was also reminded of this again while watching a few minutes of the late news at 11PM on my RS1x and 104" screen last night. Yech, completely unnatural. Ch 7, OTOH, actually didn't look too bad in this regard, although it did seem overly soft in general to the point where I wondered if they were actually shooting/producing 480p widescreen and upconverting to 1080i (the live studio shots anyway, the graphics actually did look like 1080i native.)
Someone needs to start EEA (Edge Enhancers Anonymous) for video professionals. Its the primary scourge of modern digital video, IMO, and needs to be stopped!