You don't need 1920 x 1080 resolution on a 10 inch screen, but having it capable of playing back such video means you can plug it into any 1080p monitor and play your HD videos at that monitors full resolution without lag.
As for this ad, is this really going to be shown during the superbowl? It looks more like something created by some guy on the internet than an add Motorola would shell out millions for a minute long commercial block during the most expensive advertising time ever. Even a 30 second commercial block is extremely expensive, but a minute? Maybe towards the end of the game when half of the viewers have turned the game off....
This ad is not at all high quality, I was expecting something epic to rival Apple's original 1984 ad but this is a joke, in fact it's more of a rip on Motorola for being so cheap with their marketing budget to produce such a crap ad than it is a rip on Apple. That's if they are dumb enough to shell out the millions for this to run during the superbowl, I would have spent more money on a 30 second ad that is of better quality.