Personally, there isn't much difference to me between playing games at 1080p or 720p; or maybe I just haven't been able to be spoiled by fully maxed-out games at 1080p, but most games (Mass Effect 2, Batman: AA, Dragon Age, and Fallout 3 to name a few) I've played runs and looks fine at 720p (and btwn 20-30 FPS) on my crappy Radeon 4650 (I'm waiting for Radeon 7000 series to finally upgrade from this POS). Jaggy edges, blurry textures, and slowdowns in fps can be annoying, but for the most part, you learn to look past them.
Llano is perfect for people who are content mucking around at 720p, and don't want to spend too much money. IMO, PC gamers everywhere should welcome Llano, even if they don't buy them; if AMD sells million of these chips, that will mean millions of more potential gamers to PC developers able to run their games at respectable settings.