Var, you remind me of myself so much! But when I went TV shopping I purchased my Blu Ray player at the same time. I initially went with an LCD I think I got a 42" when watching football or anything with a lot of action the picture was terrible even on hi-def channels. Returned it and got a different brand LCD, but this one was 46". The results were the same at the time I didn't realize this was a limitation in LCD HDTV's. Though some people seem to notice the motion blur more than others. So, again I returned the 46" LCD and purchased a 52" Pansonic Plasma. Well I loved it from the moment I turned it on, found tweaks on some forums to ajust the color etc. It was a lot of money though and well I was having a hard time swalling the price. So, packed it up returned it and got a 52" Sony Projection TV, initially I liked it, I especially liked the price. But after using it for almost 3 weeks I begin to notice this haze on the display and it was just irritating. Everyone that came to my house noticed it too. So, yep I packed it up and returned it. They guys at Sam's Club knew me well now. Well I was looking and discovered that they still had that Panasonic 52" that I liked so well, but the price had been dropped by $800 bucks. Needless to say that is what I got and I've had it for 10 months. Blu Ray and my Hi-Def cable look GREAT on it. I couldn't be happier with it. Now I am considering getting a smaller one for my bedroom. I am in no hurry. I figure after the holidays and sales sort of go flat there will be some really good deals, so I'll just bide my time.
My son just got a Visio 32" Plasma for his bedroom at Sam's for $399 and it too looks great, but it is 720P like yours. He says it looks fine to him but he is only watching hi-def cable.
What is funny in my story is and you probably noticed this is that each time I returned one, I got a bigger one. LOL All of them were 1080P though I knew if I was getting one I was going to get the higher resolution. Even now if I purchased an LCD, I'd get the 120ghz because from what I understand this has resolved the motion blur issue.