While I don't object to more optional settings, I think this feature is more of a myth than a necessity.
Sorry, but I have to (respectfully) wholeheartedly disagree. The problem is very simple, regardless of the two choices that you select in the receiver, you are losing content.
A 720p program is pumping out full-frame content, fully refreshed at a rate of 60 times per second. Any way you look at it, if the receiver is set to operate at 1080i (wherein each scan line is only being refreshed 30 times per second), the content that had been available is being partially lost. On the other hand, if I natively feed that content to my 1080p set, I'm losing nothing. Certainly, it has to be extrapolated into a 1080 line display, but that happens regardless of where it's being processed. The difference is that my set is able to "eat" all 60 frames of information, AND display them all as well.
Conversely, if I operate the receiver at 720p, then I'm continuously having the 1080i content dithered down into far fewer lines. Again, I'm losing information.
The whole point of pass-thru is to allow the 1080p-capable set to process (and display) all of the content from both formats.
Having said all that, I doubt that we will ever see this. People are still (to this day) fighting issues with incompatibility problems between AV components, as they attempt to negotiate their hdmi connectivity. Many components seem to "barely manage" to do that once, when the components are powered on, and sometimes with considerable delays. Imagine what that will be like when the receiver flips between 1080i and 720p, every time you change channels (e.g. between ABC & CBS, or between HBO & ESPN). I'm betting that Dish (or anyone, for that matter) really doesn't want to get dipped into that mess. Granted, they could TRY to take the position of adding the feature, and saying "don't use it, if it doesn't work with your AV equipment", but it still sounds like a rat's nest of problems.
All, FWLIW.