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Extreme vs. Incredible

720p recording would require a change to the hardware on the phone. It's like saying the Incredible will get a front facing camera from an update because the Evo has one.
Not necessarily if the hardware can support 720p but it's disabled for whatever reason it wouldn't require a hardware change just a software update.

The Nexus One was just recently hacked and now has 720p recording, it's also my understanding that the EVO and Incredible use the same camera but only the EVO records in 720p I think Verizon just didn't want it enabled on the Incredible so they could market it on the Droid X.
 
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