'27,

I can't quite see how you got those figures. If I=0.5A and R=5 ohms, then power lost is I^2*R = 1.25 watts.

At a line current of 1A the loss will be 1W per ohm of resistance. Because the loss increases with the square of the current, there's good incentive to keep the voltage as high as possible (just as with any transmission line).