ullanta
Veteran
Vertical res is more important than horizontal res; almost all HD compression codecs (up until now) have had no qualms about pre-filtering down the horizontal, but they always stored the full vertical. HDCAM, HDV, DVCPRO-HD, early AVC-HD, and 720p AVC-Intra all pre-filter the horizontal but record the full vertical.
I've always assumed this was because interlacing gets ugly with vertical scaling... that is, nothing inherently more important about vertical res. In Bob's hypothetical progressive-only camera, it might not be an issue...