I've been tinkering for weeks with the PS3 settings and the Sony TV settings.
I have the PS3 set on normal upscale, but the other settings set to full (mosquito etc) and it gives a good picture. My custom TV setting required things like some contrast, black adjuster etc etc to get the right setting.
Anyway the worse scene so far has been Admiral Kennelly in Ensign Ro when he first meets Picard. The noise and grey flecks are a problem, however on some scenes, such as Gowron on the main viewer the picture is excellent.
Static pictures, especially Geordi's visor, look stunningly clear, whilst moving frames are poor.
Overall it's acceptable 90% of the time.
I think we'll see a Blu Ray sometime over the next 2 years, but whether it's an upscale of the best transfer they can get, or whether it's the full works, I'm not sure. I'd certainly settle for them doing the best transfer they possibly can even from the video originals.
1. 1080 is the current maximum for widescreen HD, but in 4:3 what is the pixel width within the black bands??? (ie a fraction of the 1080)
2. What do other shows that have been professionally upscaled look like?