They aren't going to add more PS3 resolutions, as they've optimized it for running the way it is due to the restrictions in place using PS3 hardware. It looks fine for me at 720p or 480i, I'm not sure what the issue is, unless it's an old tube style.

If you want gaming in any resolution, that's what a PC is for.

What do you mean by close together? If you want any possible solutions you need to be more specific.