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1080p is a marked improvement over 720p, DEPENDING on image size and seating distance.

I have not see the AR200u so I can't comment. But I see a major difference between my sister's AX200u 720p in light controlled 130" vs my Sim2 1080p 180" light controlled image. The clarity is missing from 720p at larger sizes.

Resolution is meant for larger sizes, seating closer. How close are you sitting, is it the same size image, if you had gone back to back you would have seen a difference I imagine - but maybe the new panels are mucking around with perceived image quality.

The AX200u was a killer projector in its price range, as is the Epson 8100/8350.