It really depends upon your player, display, and display settings. Set your display's sharpness setting at minimum while evaluating, since that setting is artificial enhancement. If you cannot tell any difference in freeze frame, see if there is any difference for fast action from several different discs.
My up converting DVD player also has a 768p mode (1024x768) which appears to be sharpest on my (PC mode compatible) 40" 1366x768 LCD (at least # of lines match).
I have not been able to perceive a difference yet for 720p vs 1080i. One foreign disc (Asumi, with good english dubbed in US), for some reason displayed its 16:9 image slightly smaller in 720p or 768p (1" black border all around) vs. 1080i full screen, with no clear sharpness winner. Domestic discs with 16:9 image display all modes full screen.
Don't be surprised if you cannot tell any difference at normal viewing distances. HD content on 720p or 1080i OTA channels from built-in digital tuner both look good.