Minecraft is now out on the Nintendo Switch, and in Time's review of the game, they said that Microsoft had confirmed to them that the game runs at 720p both when docked and undocked.
That's not all, though, as an update to the review says that Microsoft told Time that this 720p resolution has nothing to do with system power, but is instead a result of issues shifting between resolutions when docking and undocking, meaning there could be 1080p resolution docked at some point if this issue is fixed.
Does 720p bother you with Minecraft?