Raspberry Pi has something less than decent hardware and is still able to output an HD stream (that's what I have read, correct me if I am wrong). A 700 MHz ARM processor, a not-so-great GPU, but it still manages to have an HD output.
Which parts of the graphic processing are handled by different subsystems (CPU, GPU, external monitor)? What is the load of generating a HD output on different subsystems as compared to the older analog output? Additionally, if Raspberry Pi is attached to a big HD screen, will the output be bad (as more number of pixels have to be processed)?
Some reference to the Linux graphic stack (I think I can handle some amount of technicality) will be appreciated.