CNET’s Fully Equipped blog has a great article comparing 720p and 1080p HD displays. The article gives a detailed overview of the difference between the 2 resolutions and even covers 1080i as well. It also covers what type of content is available in what definition. The bottom line is summed up here:

In our tests, we put 720p (or 768p) sets next to 1080p sets, then feed them both the same source material, whether it’s 1080i or 1080p, from the highest-quality Blu-ray player. We typically watch both sets for a while, with eyes darting back and forth between the two, looking for differences in the most-detailed sections, such as hair, textures of fabric, and grassy plains. Bottom line: It’s almost always very difficult to see any difference–especially from farther than 8 feet away on a 50-inch TV.

It goes on to say that unless you’re going to use a projector or a very large display, the difference between 720p and 1080p is hardly, if at all, noticeable. Most of the public probably doesn’t need a TV larger than 50” because most living rooms aren’t large enough for anything bigger. Can a larger TV fit in a smaller living room? Sure. But unless you sit further away, the quality of your TV watching experience is going to be reduced by the sheer fact that you are sitting too close to the display.

I appreciate Fully Equipped for keeping us up-to-date on these things. Saving a few hundred dollars when purchasing a new television is no small thing in this economy. And it’s reassuring to know that you won’t lose out on picture quality by going with 720p. Hell, you may save enough to get a second 720p set for your bedroom too!