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PS3 on HDTV settings

I've got a PS3 and a Philips 26PFL5522D/05 TV. I know for a fact that it's got a max resolution of 720 lines, well, as far as the specs can be believed - I mean I'm not going to count them :D

Thing is, when I set the PS3 to auto-detect the settings, it found 1080p. While the picture looks great and I'm generally pretty happy with it, I'm wondering if this is a less than optimal setup. Is it worth setting the resolution to 720p?

Aside from that, I love the new setup apart from having to manually select the HDMI input when I want to play with the PS3. Slightly annoying but I can live with it.
Space for rent, apply within - Free trial on Thanks button though

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