I have a 720p HDTV that suits me just fine at the current moment, and to be honest i dont see the next gen starting in 3 years tops so relax guys, when 2013 or 2014 gets near, THEN worry and go batshit insane!

DVDs are not native 720p they are upscaled from 480p. That is probably the biggest difference in what you are seeing.

You are right too :)  Hell, next gen will probably be the 3D gaming gen.  So most 1080p tvs wont work anyway.  They have to support 120hz+ signal FROM SOURCE, while most on the market today only uscale to 120/240hz internally (which wont work)

WTF!? he said that there's no difference between 1080p and 720p? WTF!? the difference is abysmal! it's like jumping from the SDTV to a HDTV!

480p (SDTV)
-720p (HDTV)
------------
240p

720p (HDTV)
-1080p (FULLHD)
------------
360p!!!!! it's 1.5 times the same jump from the SDTV to an HDTV!!!!

Heh! Thank you! well said man, agreed with ya 100%!

@ iWarMachine 480i is standard definition. 480p is ED = Enhanced Definition just giving ya a heads up.

If this is a joke, it's funny. If it's not a joke... well, it's still funny. LOL

As mostly pointed out, it's all to do with view distance BUT it's also to do with the field of vision. It's argued that a viewing field of around 24-30 degrees is optimal. So in other words, if you are viewing the screen so that 2 imaginary lines are angling from the corner of your eyes to the edge of the display and that field is 30 degrees (or so), then you are viewing the image at the most comfortable position. This is why sitting at the middle of a cinema seems the best, so to speak.

Now, if the screen is a 720 display and you are at the optimal view distance, you will see the pixel elements (especially on an LCD screen (assuming a person has 20/20 vision). If it was a 1080 screen, you will just be at the right distance as to not see the pixel elements yet still enjoy the FULL benefit of the 30 degree viewing angle.

So, if you bought a 32in 720 TV and were sitting back not much more than about 2m's (probably less), and then compare that image to a 32in 1080 TV, you wont tell the difference.

Basic rule of thumb, the bigger the display, the more people that can benefit from a "comfortable" full HD experience at a comfortable viewing distance. 1080p 32in TV's are a waste assuming that the majority of people will be more than a little distance away whilst viewing.

But, 720p vs 1080p, assuming correct setup of viewing distance and 20/20 vision? 1080p is definitely superior.

No point in having twice as many pixels? I disagree, especially since I have a 46" that shows real difference between the two.
Rush HD has quite a few 1080i broadcasts and a few other HD channels we have send in 720P, the crisp and incredible picture on Rush HD is a lot better from any sitting distance.
I've also seen Blu-ray movies in both 720P and 1080P, the difference is considerable, like it is when you're playing on the PC. All my games look a lot better in 1600x1200 than they do in 1024x768, there's just no denying it.

This don`t make any sense...

640x480p = 307,200 pixels

1280x720p = 921,600 pixels (614,400 or 3x more pixels than SD) 

1980 x 1080p = 2,073,600 pixels (1,152,000 or 2.25x more pixels than HD)

Your logic is wrong because SDTV is 4:3, while HDTV 16:9.