I posted this on the Steam forums for Dark Souls awhile ago, figured I should share this here as well.
1024x768 internal resolution is bad, that much is clear. This thread aims to provide some comparison shots so you can decide whether the resolution is acceptable or not.The game in the screenshots is ARMA2:Operation Arrowhead. I used this game as an example since it allows the user to change both the 3D resolution and the screen resolution in its options.
Aside from the resolution and 3D resolution options, I used the following settings for all the screenshots:
Texture - Low(to imitate the texture quality in Dark Souls)
Everything else - Very High(Dark Souls isn't lacking in terms of effects)
I havemaxed out AA and AF, which can be maxed out in Dark Souls either through built-in options or driver-forced AA/AF.
For every popular resolution, the screenshot is taken at its native 3D resolution and at an upscaled 3D resolution of 1280x720 (which practically speaking will be what Dark Souls' 1024x768 looks like). This is a much more elegant comparison than re-sizing images.
I hope these comparisons will help you to decide whether you shall stay by the campfire or leave. Finally it should be fairly easy to get HD texture packs awhile after launch, and it may even be possible to hack the internal resolution.