I believe HDMI only recently got a 1080p standard with HDMI v1.3. DVI already had a 1080p standard. I am not sure about component, but I think that it can also display 1080p. So the loss of HDMI on the cheaper PS3 does not mean it won't be able to display 1080p images.
“Getting too close completely blurred what we saw to the point of incomprehension, but again, this shows a whole heap of potential that's fascinating to us.”
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I believe HDMI only recently got a 1080p standard with HDMI v1.3. DVI already had a 1080p standard. I am not sure about component, but I think that it can also display 1080p. So the loss of HDMI on the cheaper PS3 does not mean it won't be able to display 1080p images.