I bought my HDTV back in 03? and it's 1080...But it's not that big. The problem is nothing uses true 1080 unless it has the one connector like USB... Brain fade and I can't think of what it's called now! :/ Back then DVD's did, but now they are afraid of copyright infringement and etc. so they won't. Even my fancy shamcy Denon that I bought in 04-05 is only 720 through the component
There are two types of 1080 also--interlaced and progressive, 1080i being the lesser of the two. To most people, 1080i and 720p are impossible to differentiate between. 1080p on the other hand is The connector you're thinking of is HDMI, and while there are many DVD players that "up-convert" to something higher than their native resolution (480p), it's still not the same thing.
Component is an analog connection and is also capable of passing a 1080p signal, however very few TV's will accept a 1080i or 1080p signal through a component input, so it's a lost cause. It's generally not the case that the player "can't" or "won't" send a signal higher than 720p/1080i, it's that TV's just aren't designed to take it.
For what it's worth, Sony stopped making rear projection micro display TV's about 4 years ago, and stopped making Plasma's 2 years ago--both due to the availability of better technology. I couldn't even venture to guess the last time they made a CRT TV. I suppose $260 for that bohemeth isn't too bad, but I've seen 42" LCD's from good brands go for $400 recently, so you really didn't pull one over on the ol' world there.
I have a 61" RCA CRT taking up dust in the basement. It works, it's free. Come get it.