I would also add that it depends on the quality of the TV set. A "budget" 1080p won't hold a candle to a 720p Pioneer or other high quality set. There are a lot of other factors that will feed into what makes a good picture.
Within a particular brand, I would expect to see some improvement between a 720 and 1080 model, but whether it's worth it will depend on the user. I ultimately landed on the Pioneer 50" and didn't want to pay the premium for 1080p. I haven't regretted it. Had I decided on the Panasonic 50", I probably would have gone with the 1080p models, as at the time I was looking the price difference within the brand was smaller than the Pio.
Good luck!
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