It's my understanding that for content that it under 30 frames per second, 1080i when displayed on a 1080p screen, is in fact shown progressively (full 1920x1080 frame at 30fps).
This is due to the 1080i spec being at 60fps with each full frame being sent as a pair of half resolution (1920x540) frames. A 1080p screen will wait for both halves and then display them merged together into the original full 1920x1080 frame.
While this is fine for movies and tv shows, true 1080p sources can have twice the frame rate (60fps).
Note- This only applies for 1080p displays
Now that said, can the apply TV fake 1080p 30fps in this manner? The hardware is certainly capable of it if it can upscale content to 1080i (unless it has a dedicated scaler chip to off load the work). The issue would seem to be if the device can handle decoding the extra bitrate in the file.
Before you say it, yes I know that apple says it is only able to support 720p, but that could be because they have no intention of selling higher in iTunes.
Case in point. Apple claims the iPhone can support a max of 640x480 at 1.5 mbit per second, but in reality it can go quite a bit higher. I have used 720x480 at over 2mbit per second (33% higher datarate).