Yesterday the iMovie 8.0.5 update introduced the new "iFrame" (knowledgebase) format which is 960x540 pixels (quarter of a full-HD resolution).However, iMovie has been exporting to this resolution since the introduction its new architecture in iMovie 08. It is actually the maximum size which you can use to export for sharing, unfortunately (see screenshot from mobileMe gallery).
However, it will probably mean that:
- the iPod nano will be updated to record in iFrame mode (firmware!)
- the same will apply to the iPhone 3GS (firmware!)
- the to be introduced (I guess) iPod Touch will record in iFrame natively
Still, I'd prefer a real 720p resolution option instead of this halfbaked approach. But Apple probably has something up it's sleeve we don't know about :-)