And here is another lengthy read on the 720P vs 1080P dilema, long read though. In a nutshell one poster goes on about his research and cites many references and comes to the conclusion that on anything below a 50", buying a 1080P TV is wasted money as your eye can not see the higher resolution. He states you would need to sit about 3-4' away on smaller sets, even closer than the article ctown linked.

Jason
M80 v2
VP160 v3
QS8 v2
PB13 Ultra
Denon 3808
Samsung 85" Q70