Word is 480p is somewhat of an improvement, 720p has major issues but can sometimes look better, and 1080i is pathetic. Also, using 720p (and I guess 1080i) automatically assumes the game is 4:3 and therefore presents as such. However, for 16:9 games (like God of War and Dragon Quest VIII), it will only allow it to be 4:3. There is no option to change it, so unless your TV as a stretch or zoom mode that support filling the screen in 720p/1080i with a 4:3 image, you're screwed on that.
It sounds like a decent product if you want everything to be in 480p, but I absolutely do not think it's worth $50. Maybe not even $25.