You can do 1080p over component just fine. Now whether the hardware can push such high resolution textures onto the screen is another matter onto itself. I believe all PS3 launch games will only support up to 720p/1080i.

This news isn't surprising considering that Sony recently commented that they hadn't begun production on the PS3. One million units at launch would not have been feasible. Of course Europe gets screwed like always. Higher price, later launch day.