Just to clarify, my TV set does not accept 720p, only 480p and 1080i. A lot of HD sets made in the early 2000s have this flaw. The 360 can scale its native 720p games to 1080i, but the PS3 downscales it to 480p. So Resistance and other 720p games are shown in 480p to people in my position.
So while all the other stuff this update does is wonderful news, the original flaw that brought up al the bruhaha about the PS3 not scaling properly (what I described above) still isn't addressed.
What gives me a little hope though is that the PS3 can clearly do scaling, so it should eventually be doable. What worries me is that the PS3 may be doing the scaling not with a scaling chip (a la the 360) but with the CPU and software. In order to play PS1, PS2 and DVDs, the PS3 is hardly taxing itself so it can dedicate some CPU power to software scaling, and maybe that's why it can't with PS3 games because those are made to use up a lot more of the PS3's system resources.
Who knows. I'm happy that this fix helps a lot of people. Just bummed that it doesn't help me.