Size alone doesn't matter. Viewing distance in relation to size matters. You could see a difference between 720p and 1080x on a 10 inch screen if your eyes were close enough. There is a night and day difference bewteen 1920x1200 and 1280x768 on my 24" 16:10 PC monitor because I sit so close.

 

Just thought I would give an update. I haven't purchased a new TV but I did completely revamp my stereo system. I bought the Onkyo TX-SR 605 with the 7.1 TrueHD decoding along with JBL Stadium Venue series front speakers, JBL Voice center channel, JBL 500W 12" Sub and JBL CST55s for the rears with my boston CR65s on the sides. I will eventually replace the Bostons with another pair of CST55s. All in all Should be a wicked set up when it's all done.

 

thumbs up on the onkyo.
i'm waiting for prices to come down even lower.
i can't remember if that model is just hdmi pass through.

 

It does upconvert to 720p through HDMI from component or other sources. I'll tell you what. I got a killer deal on everything I mentioned. I got it all for under $1400 shipped and no sales tax.

http://www.bhphotovideo.com

I got the Onkyo receiver for $389 out the door, shipped.

As well as other great deals.