That's not in the middle. That's below 720p (1280x720@60fps progressive).
1080p is actually pretty impressive for gaming. Rendering a 1920x1080 image at 60fps takes a decent bit of power, and it's pretty good for PCs right now. If Microsoft can make good on that claim, rendering natively at 1080p, that's a good little box. Then again, remember how Sony acted like a kid who just learned a new word? All that talk about the PS3 outputting 1080p, and look how many games we have that actually do it. I actually prefer the upscaled image of my Xbox 360 to the 720p native image from my PS3.