The EYE-02 and EyeSee camera records in the 640 x 480 VGA resolution, optionally downscaling to 320 x 240 QVGA or 160 x 120 QQVGA, all in high and lower image quality settings. See images below for comparison.
The reason for not using HD camera sensor is purely of security reasons, the VGA sensor performs much better in low and IR light (total darkness) conditions, where the HD sensor would not see anything. Also 640 x 480 VGA is almost DVD image quality.
To set image resolution connect to your camera in www.jablotool.com and select Settings, Video settings.