The setting and display are 720p so that's all the pixels available. So you are right. It should look big since there are not that many pixels.
Bob
I'm using a 720p Sony Bravia as my monitor for my ASUS laptop. The GPU is an Intel GMA 4500. I thought that connecting the laptop to the TV would increase the amount of space I could work with but instead, it just magnifies everything. I've played w/ the resolution. I have it set on max 1360x768. What can I do to get more space on the screen?
Thank you.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic