My view on this is that for normal viewing its impossible to see the difference between 720 and 1080!
I am sure that this will spark a debate, but I can only go on what I was able to test in my own home, by comparing 2 Panasonic 50" screens (G10 and X10).
If you are interested, you can read about it here:
Anyone want me to do some comparison tests between the G10 and X10?
What I found was that for a moving image, it was impossible to see a difference.. I tried PS3 games (selecting those which run in 1080P), Sky and Blueray..
I then paused given frames and scrutinized them and could see an only slight improvement of 1080 over 720, but it was very slight.. WHen looking at individual frames, I chose those which had background detail (such as small writing) and in truth, in my tests the difference was tiny.
When the image was moving, I can honestly say that it was impossible to tell the difference...
I also did this test at a viewing distance of between 10ft and 3" and again, could not see a significant difference.
The only think which did show a difference was a calibration HD Resolution test card (AVSHD).. With this, it was clear that the 1080 screen gave more resolution.. But it does.. There is no doubting that, so a 'test card' would show it.. But as I said, under 'normal' viewing conditions I could not tell the difference.
So in the end I stuck with an HD-Ready (768) screen and saved £300 and I will live with this until another major revolution comes along (i.e 3D).
Personally, I couldn't be happier with my choice.... I just wish that others were willing to turn their back on 1080 and snap up the X10 which gives a remarkable picture costs less than £600 for the 50" model.
Jon