Even if they're interpolating to 120 Hz, I'd hope they're actually making use of those interpolated frames, otherwise it's a waste of effort! (Not to mention entirely idiotic.)
So current TVs can and do "output" at 120 Hz, i.e. their screens are switched at 120 Hz with (potentially) distinct, different frames. It's just a case of getting those frames into the right place, either from a 120 Hz source directly (which I suspect is where displays, and source hardware, might be lacking, although 3D ones shouldn't be) or from the interpolation buffer / stream, also at 120 Hz.
It's just that when the source isn't 120 Hz, they can't add any extra information, they can only work from what is present (interpolation, etc.) That's in the same way that up-scaling an image can't add any information, but the image is still bigger. 120 Hz screens really do work at 120 Hz.
I agree about the 30 fps thing; that "myth" was borne from the cinema standard (24 fps), which is deliberate in its contrast ratio between the screen and surroundings in order to cater for such low framerates (not to mention the built-in blur on the film itself, at least originally) - these were technological limitations of the time, with "solutions" that proved adequate in practice for film, and still are in some ways today.
However, saying that 120+ Hz "modes" are "just gimmicks" may lead to further myths in the future, so it's important to, er, look at the bigger picture.
