Wickerman...
Go into Best Buy and look around. Every single display out there EVERY ONE that is digital, has a fixed pixel matrix. 1366x768, 1280x720, 1920x1080, 853x480, 1024x768... all of the digital displays are fixed pixel. This includes DLP, LCD, LCoS, SXRD, DILA, and Plasma. Front projection, rear projection, flat panels. They are all fixed pixel displays.
How do they look?
Keep in mind that almost every display will be getting the same HD generic feed that Best Buy offers to them and that many will have different resolutions than other displays. Yet, most will look really, REALLY good!
Conversion from one format to another is standard these days and the chip that is included in a $2,000 plasma would have cost more than $25,000 seven or eight years ago - and would have done less. Yes, you are making to big a deal over the issue and the comments in regards to Panasonics issues with not accepting what is an industry standard format is a big screw up by them. But, if it's an issue, get a plasma from someone else who doesn't have that issue.
Most people don't even know it's an issue because they set their HD box to output 1080i and it works great.