You know if you do the maths, standard 16:9 PAL resolution is not far off HD! If it were not for the crappy digital artefacts (low Bit Rate etc) it would look pretty stunning! In fact, when it goes progressive (whenever that may be) it will be even closer to HD (576P)! This is the main reason that PAL progressive is having difficulties being finalised (especially for DVD), it looks too damn good that the powers that be in Hollywood are afraid of piracy - again!!!
Also, as the benefits from going to 720P from 576P would not be as great as it was jumping up from 480P in the US, the expense is not deemed worthy by the industry. And no wonder, as the public here seem happy enough with the pictures they get now, which in my opinion are often bettered by many VCD'S! Where is the incentive?
Cheers Kane