I was playing Dead Space 2 today and thought that things looked a little crappy - but I thought it was no big deal because it's a semi-older game. The maximum resolution was 1280.
However, I pulled up WoW and the maximum resolution is also 1280, which I know has not always been the case.
The drivers for my graphics card are fine. My desktop resolution is 1680x1050. Everything else looks fine when I browse online, watch a YouTube video, etc.