Since price was a concern for me I decided that it would be better for me to purchase a HD compatible TV widescreen when it becomes more mainstream. I was thinking I would buy a throw away set for now. It didn't make sense for me to pay extra for HD compatibility since there are only a few current broadcasts. Also, since my family primarily watches regular TV the widescreen format seemed like it would be distracting unless we were watching DVD's formatted for widescreen.
I just bought a Sony KV36FS100 Wega for my throw away TV. Another reason for picking this model is it fits in my current entertainment center. I'm figuring that when HD really arrives I will buy a real plasma set when the prices come down. It might just be me but I had a hard time paying extra for technology that hasn't arrived yet. My only concern is that my set will be a boat anchor in two years and I paid about $900 for it. I can still return my $900 set and purchase something more expensive if someone can convince me that I should bite the bullet now. It seems like we are in-between technologies today which makes it difficult.
Well, your picture would be a good deal better with just progressive scan dvd if you bought an HD set. 480p is easily overlooked when people see HD figures, but it actually looks quite good. I can't see spending $900 on an analog set right now, but then I don't have your eyes or budget. Now is not a bad time to buy an HD set. But if your happy with the picture quality of your Sony and can wait several years and save up for a real high end HD set, keep it. However, the fact that you posted this tells me your already having doubts. If you've got the money for a good HD set, go for it and save yourself the worry. I haven't even kept a close watch at the prices, but figure out your budget and ask around at other forums to see what'll give you the best bang for your buck. And if the best set for your money looks like something you'll be happy with for a long time, get it. Even a plasma. You said you were waiting for the price to drop on them; say the price drops $1000 in the next few years...wonderful, you spend the same amount of money because you bought this lesser quality Sony($900) and watched it for 3 years instead of getting what you wanted now. Maybe its flawed, but thats my logic.
I don't think you will be buying yourself a new Plasma in two years, but that is just my opinion. You will probably get their SXRD technology if you are a Sony fan. You are going to give up some picture quality by stretching 4:3 SD TV. Looking at the new Sony line coming out in a month or so, you could get the 46" 46WT510 for around $1699 with the stand if you find a good dealer. You might get the old model for cheaper too if you want to save money. If you would like to be able to watch 4:3 shows like without stretching them, you can do that on a Grand Wega LCD without worrying about burn in. You would be looking at $2,700 for the 42WE610 and they might include the stand. However, if you don't sound like you want to spend the money, I would get a cheaper anchor. As you already realize, $900 is an expensive transition TV. I would spend the money, or go to some cheaper if I couldn't afford it.