what do i really need 1080p for?

The way it was told to me is that no station in the country is broadcasting in 1080p, and won`t for a few years. So no matter what super duper high resolution TV you get you will only see 720p. If I am wrong I welcome the correction.

Your super 1080p is ready now to give it`s all reproducing Blu Ray DVD`s.

I thought the same. 2 years ago I bought a Sharp Aquos LCD 1080i for the bedroom and loved it. This year we went looking for a TV to replace the one in the den. The Sony Bravia LCD was nearly twice the price of the Sharp, but my wife insisted the Sony's picture was better. She was right. Not only on Blue Rays, but on standard DVD's and regular channels as well. The difference is readily visible. It seems to me that the higher the contrast ratio, and the faster the refresh rate, the better. These are my two cents, FWIW. Happy listening.

If you plan on getting Direct TV at some point, their HD package broadcasts at 1080i. This signal is a significant improvement over what you are currently seeing. I had a 36" Sony as well and can tell you that the 50" Samsung I have blows it away at 1080i. These sets are currently very affordable, so I would at least reach for the next rung up. BTW, you will be very unhappy looking at standard cable with one of these sets as the picture will look very soft and dull. If your goal is to keep basic cable, I would advise you to just keep your existing set. Off the air HD is free however. Just invest in a decent antenna and watch local channels in HD.