They clearly have to be discarding one half of the upscaled pixels. There can be no question of that. They haven't said that directly but they were very very clear that only two different 1080p frames are being flashed for each original 1080p frame and that each of those two frames were flashed twice. ABAB with the B frame e shifted. At the Cedia Expo, the presenter said that the A frame was the original 1080p source frame. I question whether that statement was correct. I just don't know but whatever they are doing it certainly does the job presenting a more solid or firm image with greater 2D dimensionality. That's my story and my observations, I am sticking to it (the story) andthem (the observations).
Now it would seem that the discard of half the pixels is really not a total discard of half the pixels. With the overlap method they said they are employing I would think that the discard is 1/2 the total area of the pixels using portions of all the upscaled pixels to creat the two 1080p frames. But to me who really doesn't know, it would seem that frame A would not be the original frame but a creation based on the overlapping.
I really am quite naive technically and non expert on all of this. I yield to the experts, psuedo or otherwise.