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Beyong 1080p for the home isn't neccesary.
Most Digital cinemas use 2K projectors, thats 2048x1080 resolution. Does it look too blocky for you in the cinema? IMAX theatres use 4K projectors, 4096x2160, I don't have a room that size in my house :)
I have a 92inch 1080p front projection screen at home. I can't see the pixels sitting 8 feet away. I do notice the difference between 720p and 1080p, but don't think I'll notice the difference between 1080p and 2160p at that distance. Web pages without zooming are damn hard to read at 8 feet.
What I hope the next step will be is to go to a 2.37 aspect ratio or 21:9 tvs. Phillips made one of the first ones sporting a 2560x1080 resolution, no more black bars when watching a movie :)
And if proper splitscreen is included you can have 2 720p pictures side by side without any scaling.
Ofcourse Blu-ray does not support this yet, any 2.37 aspect ratio movie is stored in 1920x810 pixels on the disc. So you will unfortunately see an upscaled movie on that tv. Maybe we'll get anamorphic movies on blu-ray as we had on DVD, meaning the 2.37 movie will be stored with 1920x1080 pixels, then stretched to 2560x1080 or shrunk to 1920x810 depending on your tv.
What we really need to get better picture quality is a higher data rate. Blu-ray caps out at 40mbps which looks great for slow moving scenes, but still pretty poor when you pause the movie at fast action scenes. (Still miles better then the stuff they sell as HD on tv, 7 to 14mbps mpeg2) Compare that to movies in the cinemas that run at up to 250mbps. (Uncompressed 1920x1080x24p video runs at 1139mbps)
Also I would like to see movies on disk without chroma subsampling. Everything you see on Blu-ray and DVD has been stored using 4:2:0 chroma subsampling. That means that the color image is stored at a quarter resolution as the monochrome image. This is done because it saves half the bandwidth (48 bits per 4 pixels instead of 96) at a hardly noticeable quality loss since the human eye is more sensitive to light intensity then to color.
You notice it better when you start upscaling the image. Consider this DVD is 852x480 with a color image of 426x240. No matter how great your upscaler is, it's not going to look all that great at 1920x1080 with effectively only one color sample per 20 pixels. This means that when you currently display a 2.37 blu-ray movie on a 2560x1080 tv you upscale 1920x810 with a color image of 960x405. Not as bad as upscaling a DVD but still not ideal.
So for now there's not much point in getting a higher res tv until you can get content for it. It will be a while until people are ready for yet another disk format. Heck it will still be a while before you can get blu-ray quality by download (or anything worthy of 1080p by cable/satellite) 10mbps h.264 is pretty much the highest quality you can (legally) get over the net nowadays.
Don't get me wrong HD tv still looks amazing most of the time, but it still has huge room of improvement before switching to a higher resolution. As of now 1080p broadcasts do not even exist yet, all tv content is either 720p or 1080i mpeg2.
