Jay,
+1 - you really can't get a TV that's too big. I am sitting 13' from a 58" Panny plasma and it works great.
As far as your BluRay solution, the Oppo or PS3 will work well. I love the PS3 and you might be able to score some savings.
SonyStyle usually has some type of promotion going on (Sign up for their Sony Visa and get $$$ in credit on your account after your first qualifying purchase).
Instant approval, buy the PS3 on their site, your next (or second) charge bill shows up with a credit on it. Works great.
Currently, the credit is $50 on a $249 (or more) purchase. I got $100 2 years ago and I've seen $150. It varies. Plus free shipping.
Just a thought.