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Im not sure on the prices in america, but here in the UK you can get decent LCD and plasma for arround £1000 ($2000), this is for a 42" screen.
You will find that plasma is better in any case, especially on screens larger than 32", If they are available there, take a look at the 720p range from Panasonic, the older models can be found very cheaply and the internals are pretty much the same as the newer, more expensive ones (i think theyre called PX60, PX600 for the older ones, 70/700 for the newer ones).

Having said that, the larger you make a 480P image, the more blocky its going to look, but i find wii games look fine on my 42" screen, you do notice the jaggies if you look for them tho.