poor youtube 720p interpolation up to 1080p tv

I sent an email to Anthony Wood awood at roku dot com, Roku's CEO about this, copy below (sorry, I tried to insert the images but this forum can't handle them).

Dear Anthony,

As an investor in Roku, I love my little Ultra box but there appears to be a video quality bug in playing 720p videos on Youtube.

My Roku is connected to a 1080p TV and I am noticing that YouTube videos that are 720p look awful, poor interpolation up to 1080p. YouTube 1080p material is fine. My Tivo for comparison plays YouTube 720p videos with great quality. Why does the Roku do such a poor job of playing 720p YouTube video?

For example take this image from a 720p video by ABC's Good Morning America:

This inset shows the awful up-res quality:

Restarting, going to YouTube and viewing a 720 video first, results in good quality as seen below. However, as soon as you view a 1080 video and go back to a 720, the quality is awful and remains so for all 720 videos.

Here is the YouTube version info:

Here is the Roku version:

I hope that your engineers will work with YouTube and figure this out, it's a major headache to have to restart the Roku every time you want to watch a lower res YouTube video.

Thanks!
Roger Dawson