probably stick with 720 since the TV will be in the bedroom and not get watched constantly. I don't have a dvd or blu-ray in there either. WalMart had the 37 inch 1080p on display last night and I couldn't see a ton of difference, but then again you don't know the resolution of what they were showing on all the TVs either. That's the cool thing about my HD cable box, it has a readout on what resolution the signal is being broadcast in.
Right now I'm not dead set on getting another TV I'm just researching what's out there and current pricing. Best way to find something out is to ask, ya know?
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