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It’s not the size of the
It's not the size of the TV that really matters. It's the viewing angle and viewing distance. What good is it to watch a 42"-50" HDTV if you sit 3' away from it? What about 15' away from it. My point is that there is a sweet spot somewhere in there.
Watching a 60" HDTV 1080p set can be worse than watching a 27" HDTV 720p set depending on where you are sitting. If you sit too close to the 60" set, you may see screendoors and other artifacts. You may not be able to see the whole picture without moving your eyes quite a bit. You sit too far away and your eyes will not be keen enough to see the difference between 1080p and 720p. They just aren't sharp enough. There's a sweet spot for each set.
Why do people typically sit within 24" of their computer monitor? Because they want definition in a sweet spot.
There's a sweet spot on JDOGG's TV in which 720p would look just as good as 1080p. Of course, this assumes that the 1080p set that he doesn't have ISN'T in it's sweet spot. But because of the way some homes are built and the way some rooms are shaped, some people may not ever be able to get to the 1080p sweet spot anyway so a 720p set would do.
Oh, and don't forget to include factors like glare, reflection, and finish to the surface of the HDTV or the eyesight of the viewer.
Where JDOGG places the HDTV will determine if he will be able to see the difference in upgrading to 1080p. I think he'd have to sit really close to the set to see the difference.