Well, that's now two pieces of software (vReveal and Avidemux) I've no experience with. Any more, anyone?
I'm not at all sure you are right when you say that vReveal is "downsizing 1280 x 720 from camera to 720 x 576" as, if I read the blurb correctly, it doesn't do the fancy processing if fed anything having a vertical resolution of more than 576 pixels (PAL resolution). But, of course, you are right that they can't be adding information which wasn't there in the first place. Unfortunately I don't know enough to be able to judge whether they are employing algorithms which extract extra detail by using adjacent frames which, in the case of hand-held videos, probably won't be registered precisely with the one being processed and so may actually add extra information. Do you?
I'd be interested to hear a critique (good or bad) from someone who's actually used the program as, unfortunately, I haven't the time or the expertise to do the testing. It may be that vReveal actually successfully tricks the eye and brain into seeing more than is actually there. I do note that they say that vReveal features an adaptation of the CSI-style “super-resolution” video enhancement technology behind Ikena, MotionDSP’s high-powered forensic software used by law enforcement and intelligence agencies
. For more about Ikena visit MotionDSP's Ikena product page
which has some videos showing how detail enhancement using that program actually can work in real life.
Again, I'm not endorsing any software here. Just flagging something interesting.