Isn't that the reason why a lot of Japanese game developers doesn't want to release on newer consoles? The stigma that the games need to be super high res and why the mobile market is appealing from a budget and asset standpoint.
I really do want to play FF Type 0 in HD PS3. I don't really mind the graphics though. I am super excited to just play it in English (God bless that fan translation for helping me finish). I wonder if they'll do a PSVita port?