Did some research. Very interesting, essential reading:

http://reviews.cnet.com/720p-vs-1080p-hdtv/

Basically, 720p is probably the best choice for any screen 50 inches and under.
Tv is broadcast in 720p.
Consoles are 720p.
Blu-Ray is 1080p, but the difference is minor.

Damn you, now you made me cancel plans on buying a 46 inch and now Imma have to go and get a 52 inch when I get back to NY lol.

Lies.. blu ray on my samsung 46 A656 TV gives nothing short of amazing picture quality, while DVDs at 720p gives great picture quality.

Amazing > Great.

I don't have any plans to ever buy a TV that's close to 50 inches so 720p is good enough for me.

I think what he is saying is that BD in 1080p is minor difference compared to BD in 720p.

1) Basically, 720p is probably the best choice for any screen 50 inches and under.
2) Tv is broadcast in 720p.
3) Consoles are 720p.
4) Blu-Ray is 1080p, but the difference is minor.

1) not true. The reality is that the screen size and sitting distance determine the resolution needed for the average consumer. Any knowledgable consumer should figure out the sitting distance and the size of screen they are going to purchase, and then determine if they can notice a difference between 720 & 1080. Most won't, but some might be able to. You can also use a chart like this one to help you determine what will be cost effective.

2) not true. TV is broadcast in 720p and 1080i, with most channels using 1080i in my area (fox is the only 720p). LCD screens have a native resolution, so being forced to scale from 1080i down to 720p can be bad (if you have a cheap TV). If you want to use that argument, then a good consumer would do research first to determine what the resolution will be for their input source.

3) not true. The PS3 can output 1080p. Not very many games support 1080p, but a few do.

4) this really comes down to point 1 and doesn't make any sense in posting it.

the 360 can do 1080p too......

OT: I sit in front of my 24" LCD monitor and I try to watch/play everything in 1080p (or 1200p), so yeah the higher the resolution the better.

cnet... What does that tell you?..

1) Stanford and Berkley did research on this exact subject (a year or so ago).  They found that the majority (over 80%) could tell the difference between 1080p and 720p starting at 37'.  (under 37 people could still tell the difference but the % was smaller)  The study covered people with all types of vision (was some 3000ish people tested).  Like Nordlead said, viewing distance is key.  (this study also covered refresh rates, but I dont remember that part as well as the resolution portion.  Ill put a link in if I can find it again)

2) Some providers will give you a 1080p signal (its usually just 720p upscaled to 1080p) and/or give you on demand movies in 1080. (this all depends on what services are provided in your area)

3) He beat me too it.

4) See my #1.

It really just comes down to you personally.  If you hook up a computer to your tv (I use my Samsung 40' as my comp monitor) it will make much more of a difference going from 720p to 1080p. 

Next generation is only in a few years and they may all be 1080P consoles. So in that case you're better off with 1080P, 720P is likely to be a short lived standard from here on out.