Adam, I haven't posted in this thread in a little while, so first off, congrats!! I guess when it rains, it pours, because you already got a bdp too!! Nice, that would easily be the first thing I'd try to convince you of. Thanks for saving me the breath.
But, I know you know already, or at least suspect it, but resolution's impact is ENTIRELY dependent on your distance, (and of course acuity of eyesight).
I don't know how far you sit, but anything significantly greater than about 6' simply, mathematically, scientifically means that you cannot appreciate the full effect of the increased
resolution. It Really Is That Simple.
Also, Transformers, at least on HDDVD is very far from demo material as far as live action. The CGI, OTOH, does look good.
Try and experiment for me. Kill Bill, Ratatouille, something of reference quality. Have display broken in, calibrated, for lights off viewing. Make space, rearrange, to have a seat placed 6.5 ft from the display. Reposition, temporarily, your speakers for adequate effect. Then tell me what you think.
If your experiences are like mine, DVD is not even acceptable anymore. Upconversion is like putting lipstick on a pig. Remember that the percentage increase of vertical lines of resolution of BD over DVD is in fact greater than the difference of DVD over VHS. Sure, if you sat 10 ft from a 27" crt, maybe the difference of 480 over 250 would be minimal, because, well, you simply, mathematically, scientifically could not appreciate the full benefit of 480p with 20/20 vision with the described circumstances.