I have a 40" Sony Kick-ass TV (the official title); it's 1080p. For those saying you can't spot the difference between 720p and 1080p at that size: get your eyes tested. The difference is enormous, assuming your viewing distance is appriopriate. My sofa is about 2.5m from my TV, and even my mother-in-law notices the difference at that distance. Truly, it's enormous. 720p images look crap when compared to 1080p images. I now love Blu-Ray and I look forward to any 1080p game. I would never use any res than 1080p for my gaming PC on the TV. 720p, for me, is not a preference, as it looks crap by comparison.
That said, I have a 720p TV downstairs for TV and PS2, and that works amazingly.
So, if you're only playing on machines that rarely, or never, properly use 1080p without upscaling (Ps2, Wii, 360, or whatever), then 720p will probably do fine, as you'll never use the extra pixels properly (upscaling of all kinds is imperfect, unfortunately, as should be obvious). If your using it for PC or PS3 gaming, or for Blu-Rays, get 1080p and be happy.
:)
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