720p is within the realm of possibility but if it is anything like the EVO 4G, I don't want it- horrible bit-rate, horrible codec, horrible audio.
They should either do it right or don't do it at all. If it can't be as close as the iPhone 4, then don't even bother.
It definitely has the hardware but if it isn't implemented correctly, it will be horrible. Heck, I only get 15-22 fps on our incredible at 800x480 in low-light. I still get the low 9khz audio frequency.
The DINC uses the same Ominvision sensor as the EVO (http://www.ovt.com/download_document.php?type=sensor&sensorid=69
Omnivision's spec state it can do 1080p. 720p is doable with the right camera app, the right bitrate, the right codec, and the right write-speed.
When I plugged my DINC into the debugger, all I see are API calls to a Qualcomm camera drivers when the camera is on.
This explains why the video/photos are horrible on both the DINC and EVO.
HTC's Droid Incredible doesn't use a Qualcomm sensor. They use a Omnivision sensor.
So what does that tell me? They didn't write an optimized camera app for the sensor. They're using a generic driver for their camera app.
When I plug in a Motorola Droid or any other Android phone, I see the right drivers being loaded up within their respective camera apps.