1280x720 blurry? Should've gone to specsavers.
I use my PC at 1280x768 on a 37" Screen for everything (including gaming) and it looks crystal clear. And if you think a game that runs around 40-30fps is "crappy" you are living on another planet. For the record Gta4 also runs fine on the 'box. Oh crap, I just fed the troll.
I very much doubt that is crystal clear. That's the sort of resolution you'd use on a 15" screen!