Wow Dean, that means you've smartened up. 
No seriously, you don't want to be like me. You'll get into debt faster than having a russian or chinese girl friend.
To answer your question, every digital camera has some sort of DSP (digital signal processor). Sony's EIP reads the CMOS sensor pixels at a 45° angle which allows a 960x1080 sensor to be read as a 1440x1080 sensor (or so they claim). The science behind this is over my head of understanding sensors and DSP, but the results are very encouraging. The process is what they call black stretch on your camera too. Black stretch apparently stretches the dynamic range of the CMOS cameras by 2 stops.
From what I see of the demo V1, what is the best image enhancing is knee control and the prevention of smearing. Something Sony never put in the lower range for fear of eating into their higher range camera sales. Panasonic,JVC and Canon really pushed them to release the V1 with progressive scan at an aggressive price even.