If you are getting bad jaggies on a 32 inch screen then i'd suggest that your TV"s scaler isn't that good. On my 34 inch HD CRT (no scaling needed) jaggies are barely evident and even then only in a few games. On my brother's relatively cheap 37 inch LCD the jaggies are definitely worse but still not that bad unless you are sitting on top of the TV. On my mate's 46 inch Bravia they jaggies are significantly less obvious than on the 37 inch LCD and the image is almost as good as on the CRT, amazing given the larger screen size. I've also seen the Wii on several other large TV's of various brands and it ranges from excellent to horrible.
Scaling is really important and in the end 480p can still look really good on the right TV.







