As said before in the thread, modern console games at HD resolutions (720p, 1080p) look excellent. This is because a) We are used to 480i/p on consoles and b) when playing console games, one sits farther away from the screen than one does from a pc monitor, making the aliasing less noticable.
On a monitor, resolutions matter much more. A higher resolution allows you to see more on the screen, and use much less AA since the edges are more defined.
On games like Crysis, which hog the GFX card, going to higher resolutions seems to slow the framerate less than using AA does, thus the argument for higher resolutions. (Crysis Benchmarks)
Once I started using monitors that supported 1600x1200 and higher I couldn't go back. Distant objects are much harder to aim at in lower resolutions. Example, there are almost 2.5 pixels on the 1600x1200 for every one pixel in 1024x768. Aiming at someone's head in the distance, which may be 3 pixels wide in a low res, will be 7-8 pixels wide in a higher res.
To the casual gamer, small jumps in resolution won't make much of a difference, as the size of the objects don't change, but a careful eye should be able to pick out and appreciate the detail.
Man, that was stiffly written. tl;dr I use higher resolutions because I like the detail compared to using AA on a lower one. That's what I'm trying to say.
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