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Short answer: yes, the people that told you that gave you a very good advice, you can trust them (they must be cinephiles).

Long answer:
Plasma and projection, in HD, have a picture near movie quality in theater. They deliver the same smooth picture, so they are usually very well suited to display SD content, which goes well with the smoothness. A consequence of that, is that plasma and projection have a correct and realistic colour representation.
On the other hand, LCD have a hard image and flashy colours that aren't realistic at all, but some people like that. But it's not suited at all to look at movies or SD content: it will denature the picture completely. Again, some people seems to be OK with a picture that doesn't look like what it was intended to be, as long as it's flashy.
Then, the LCD have several big problems with SD content, and even HD content. You (or at least I) can notice when someone has a LCD just by him saying problems he has with some "contents", when in fact, the problems come from the TV: lag, smearing, tearing, banding, posterisation, ...
The worst effects when a Wii is hooked to these, is the lag and smearing. The lag is immediately noticeable, and I guess lots of people with a LCD and a Wii just cope with it (I know I couldn't do that). You hear far less about it now, because I think people realized that it was their TV having the problem, especially when they saw the Wii working without any lag on a SDTV, putting them to shame.
Then there's the smearing, mosquitos, ... When someone tells you about their Wii looking like shit on their HDTV, you can be sure they have a LCD display. You can see in stores, the LCD who can't cope with the content, displaying huge splashes of colour.

And the best image quality is still held by the very expensive plasma from Pioneer.