You have a 1080p source, get a 1080p set. I don't care what those stupid charts say, you CAN see the difference on a decent set. I sit 9' from my 40" and I don't have any problem seeing the benefits of 1080p. It isn't like if you sit 1ft further away that it suddenly is going to look like crap, so I don't see why people treat it as if it were the case. If you can wait a few weeks with what you have, Black Friday will be the best time this year to get a set IMHO.
j, I think for the benefit of the OP, you should describe what you are comparing this to. A native 720p display side by side, or 720 vs 1080 on your display, or 480i display vs 1080, etc.
FWIW, my friend has extraordinarily good vision, significantly better than 20/20, and he has an issue with older 720p plasmas because he can detect the pixelation. Even if the viewing angles he saw these with were more significant than a 32" from 8'.
Another common argument for getting a 1080 display, even if the rez might be of no benefit, is that they often are more feature laden.
However, there is no doubt that the 720 displays are significantly cheaper. Both Panasonic and Samsung have "720p" plasmas that are much cheaper than their 1080 counterparts.
sample viewing angle calculations:
32"/8' = 16.5 deg
37"/7' = 21.7 deg
40"/9' = 18.3 deg