I've been wondering why my Netflix has looked sub-par and hasn't output to 1080p since the Metro update. Now I know why. All video content, except for Zune Marketplace, is limited to 720p. Eurogamer.net has an in-depth article explaining the whole thing. http://www.eurogamer.net/articles/digitalfoundry-what-went-wrong-with-the-360-dash
The article is very telling how this is a planned move, not something that was done accidentally. This is simply wrong and a slap in the face to their customers.