Karlos, yep I'm running in HD720 mode through the Indivision now, which is 1280x720. I took a screenshot and put it in the gallery to show how it looks, it's nice having the extra horizontal space to use up. Check out my Shell. 
I forgot just how good low-colour workbench screens could look, especially with the right dithering. Many moons ago, I ran a 16-colour high-res laced workbench with a tool called "MagicTV" which allocated extra bit planes and did some palette trickery with them to reduce flicker. In combination with the natural softening you get from an old CRT, it was hard to tell that it was only 16 colours. I used to lock the whole palette down and pre-dither images in PPaint for use as backgrounds. Happy days...
And yes, that console configuration does look a trifle familiar
