While doing some research around the web about the benefits of 1080p resolution for a Home Theater I discovered some interesting limitations. In this article it discusses the actual capabilities of the Human Eye (20/20 vision can, at best, discriminate 1/60 degree of arc. This means that the further you sit from your TV and dependent of the size of your TV going to a higher resolution may not truly be noticed.
It seems that coming soon it will be difficult to purchase anything but a 1080p LCD/Plasma TV. I'm sure the lower resolutions will be available at cheaper prices but the mainstream seems to be slowly moving to 1080p. So this article may become a non-issue with the proliferation. However, while you are still paying a premium price for 1080p over 720p (768p for most LCD panels) this article could ease your mind on whether you should fork over the cash.
If you are looking at a smaller screen, don't bother. If you are looking at larger screens, especially Front Projection to get upwards of 90-120", 1080p would definitely be noticed.
I hope this helps you...
