Why is this scary?

What I find scary is that so many people seem to feel dissatisfied with TV at 1080p. I can't make out any pixels at that resolution unless the source material has high-contrast pixel edges (i.e. not camera captured images) and the screen is taking up most of my visual field.

It is scary because all the talk is about how 1080p is the minimum requirement for a new console (see the article). Heck it is claimed to be the minimum requirement for the new consoles.

What the Wii/Netflix usage shows is that many people don't care about 1080p or even 720p, they don't even connect video via digital. Even the audio is analog! (In my opinion audio fidelity is more important than picture fidelity.)

I think audio is fine analog. The frequencies involved are a thousand times lower, so distortion isn't a big problem.