I guess 480p is fine if all you're trying to do is look at in the small screen. But if it ends up coming in worse than that, then there's a problem.

I suppose it all boils down to resources and storage space, but there's also something called, "good enough." And good enough is not usually the resolution that we had at the start of the 21st century for most things. It would be at least 720p. So, I don't know. It will interesting to see how quickly things can upgrade and improve, especially if there's issues with further compression, editing and conversion.