It's hair. Hair that is made of plastic. As in not even attempting to fall naturally. Hopefully it's not like that in the finished game...
Real hair can act the same way. It could be tucked into his tunic, holding it in place so it doesn't fall.
They're high-res in comparison with the tiny images in magazines, or in magazine scans. Also, what did you expect? The Xbox 360 to suddenly be able to render at 1440p? There are very few (<1%) monitors in the world with a resolution as high as 1440p. Would you consider high-res 1080p? Not sure any (visually complex) Xbox 360 game has ever shipped running at that resolution. Simpler games, maybe.
The Xbox 360 has resolutions up to 1080i and the PS3 has up to 1080p.
@Phyoshi Actually, 720p is considered to be the lowest resolution to be able to be considered HD, so yes, 720p is high res, just not ideal.