It sounds like you don't understand bitrate/s
I bet I understand all of this stuff better than you do. Sure Vudu is compressed and so is Apple 720p and so is Apple SD. With 1080p

TV hardware, at least we gain the OPTIONS to consider Apple's 1080p compression vs. Apple's 720p compression vs. Apple's SD compression when making iTunes rental choices... just as I can- for about 3+ years now- choose to rent the 1080p Vudu movie compressed vs. the iTunes 720p compressed or iTunes SD compressed version.
Furthermore, iPhone 4s 1080p video is also compressed but I don't see hardly any complaints from iPhone 4s owners about the quality of the video they shoot. Instead, it's just the opposite: gushing love for the quality. If the premise is that this

TV update is influenced by the fact that Apple has decided it wants its iDevice-shot 1080p to be pushed on to our 1080p HDTVs without first being downconverted to 720p, then this

TV is likely tohave hardware at least robust enough to pass on the quality/compression/bitrate being shot on iDevices. If that's "gushing love" good, then it should look great to see that on our HDTVs in the resolution- and compression- in which it was shot.
Personally, I'm hoping the

TV3 will be able to do better than that myself- maybe getting fully toe-to-toe with blu ray chipset capabilities, which are also sold at a profit in retail boxes for less than $99. Maybe Apple has finally decided to fully compete with the "bag of hurt"? Sure, iTunes 1080p rentals will be compressed, maybe as much as Vudu 1080p, or more or less. But frankly, so what. It's better to have the
options than not have the options.
Apple also provides video editing software and just about all HD camcorders shoot in 1080p now. iMovie (or better) can edit that video and output it at 1080p. iTunes can import that 1080p video and it plays at 1080p right in iTunes (for years now). Odds are high that if you've bought an HDTV in the last few years, it's probably 1080p capable. Thus, this final link in the chain is all that's left to move our own content at full resolution to our HDTVs. Hopefully, this

TV3 will completely nail it as that final link.
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Actually, no US channel broadcasts in 1080p. A few satellite channels offer on demand movies in 1080p. But that's it.
Unfortunately, this is true. But there are sources of video beyond cable/satt such as our home movies shot with 1080p camcorders referenced above. iPhone 4s and probably iPad3 video is 1080p. A person can rip their blu ray collection for on-demand 1080p video. And there are services out there besides iTunes that offer 1080p streaming. If Apple builds in 1080p hardware this time, I expect some podcasts to immediately upgrade to 1080p (imagine hubblecast and similar at even higher resolutions). Etc.
Bottom line: our HDTVs are maxed out at 1080p capabilities. We have lots of sources of 1080p that is not just iTunes rentals. Apple has long provided the tools to edit & render at 1080p, and then store and play them in iTunes. All that "just works". This ONE thing is the only link in the chain that is not yet 1080p capable.
It's fine to feel as you do but I'll again point out that those who share your opinion lose nothing if Apple rolls out better hardware. If 720p or less is good enough for you, 1080p hardware will play that 720p or less to its fullest. And just as there is still SD options in the iTunes store, I expect 720p and SD options to still be available in the iTunes store if 1080p options join them. Then, those who feel as you do can retain the EXACT SAME EXPERIENCE they have now... even if they purchase a new bit of hardware that can process a bit more.