Apple TV handles 1080p, but Apple ain’t telling

Tests run on the recently released Apple TV has shown that 1080p resolution is supported, although the output is the disappointing part since the image will be downscaled back to 720p on your display. The silver lining in this cloud would surely mean those who already have amassed a large library of 1080p content need not reconvert their collection to work with the new Apple TV. Just how long do you think it will be before someone hacks the Apple TV to run 1080p files while displaying them?