I usually play on a fairly large HD TV at 1360x768, but the other day I went over to a friends where I played on his Standard Def TV. Given its moderately sized one, but because it was a standard def, I could not notice any irregularities in textures or pixelated shadows due to the lower resolution. The game looks perfect, ironically. The two things I noticed were that when you look up, the compass bumps up slightly, and oddly, but you can still see it. The only legitimate issue is that the quest marker on the compass is abit hard to make out. By no means is this a game breaking issue...I think its being over exaggerated a tad....
That Xbox Texture issue however....grrrrrrrrrrrrr.....Thank God they're patching it.
What you fail to understand is that not every SD tv has the same effect.
Alot of people can see way less of their interface than your friend can on his TV, he just got lucky.
Don't act like it's not a big deal if you don't know what you are talking about.