BD question on my monitor

[resmonkey]

No HDTV, but I do have my PS3 connected to a Sceptre X20WG-Naga LCD monitor, via HDMI to DVI cable.

Of course, it's a monitor, and it's for close-up gaming at 20.1" and all...

The monitor's native res is 1680x1050. Yet, it does accept a 1080p image from the console. I know it's being downscaled or whatever, but it is a remarkably good image. It's only a few thousand pixels less than 1080, too.

The games and BD movies are played in my native res, I believe, since there aren't 1920x1080 physical pixels, but why do I not see any downscaling artifacts or things that would stand out? If I didn't know my monitors native res, I would never guess I'm not getting full 1080p. It's also a -bit monitor, and I've noticed some color banding in gradients of black, but I don't mind that. It was only $179

Am I REALLY missing out on 1080p? Of course, I'll buy one later, but gaming with this downscaling isn't going to cause any issues, right?