LED TV? Didn't know they made those but the quality would be crap considering the size of LEDS

I'd go for a Plasma or Liquid Crystal display for 1080p

Thank you for proving my point.  It's 50% more pixels!  Much better!!!  Not exactly.  Take a look at the picture in the link.

http://en.wikipedia.org/wiki/File:Seurat-La_Parade_detail.jpg

Stare at it up close, and it's going to look incredibly pixelated.  Now, back up 10 feet or so, or as much as you're able.  Starts to look more like an actual face, right?  Same thing with TVs.  720p is going to have bigger pixels.  As you get up close, you're nartually going to see things in greater detail.  In the case of a person you might notice wrinkles or pores or dirt or blemishes or whatever.  In the case of a TV, you're going to notice pixelation.  A 1080p TV has more and smaller pixels, so you'll notice less pixelation on a 1080p than on a 720p.

But as you get further away, you're not going to see in as sharp detail.  It's the same effect as with the picture.  If you don't understand why distance would matter, just think about it.  If you had two 32" TVs and one was running at 1080p and one at 720p, do you think you could you tell the difference between the two at 100 feet? 50 feet? 25 feet?

So, for a lot of people 1080p is not going to matter at all.  A lot of people will either be sitting too far away to notice the difference, or will not have a big enough TV to notice.  If you have a 40" TV and you're sitting 8 feet away, you're not going to notice much of a difference if at all.  For the average gamer, it's better if companies focus their horsepower on other effects that will be more noticeable.