It isn't surprising considering your screen size v.s your distance to your display.
My impression was very similar to yours while shopping for new display last year. While comparing Pioneer 1080p plasma (50" size) to its 720p counterpart from the distance of 12 feet (my viewing distance) I had very difficult time distinguishing one over the other. That's why I chose less expensive 720p set and invested the difference in better quality 1080p front projection setup (80" electric screen and 10' viewing distance) which isn't that forgiving in regards to differences between 720p and 1080p material.
In closing argument, I would say - size does matter. If your display is smaller then 50" and your viewing distance greater then 9', save yourself some money and delusions. If you really want to see HD at its best, invest in front projection and quality 1080p source (satellite and Blueray)
YMMV
Mariusz
My impression was very similar to yours while shopping for new display last year. While comparing Pioneer 1080p plasma (50" size) to its 720p counterpart from the distance of 12 feet (my viewing distance) I had very difficult time distinguishing one over the other. That's why I chose less expensive 720p set and invested the difference in better quality 1080p front projection setup (80" electric screen and 10' viewing distance) which isn't that forgiving in regards to differences between 720p and 1080p material.
In closing argument, I would say - size does matter. If your display is smaller then 50" and your viewing distance greater then 9', save yourself some money and delusions. If you really want to see HD at its best, invest in front projection and quality 1080p source (satellite and Blueray)
YMMV
Mariusz