There are a couple of different things here:
1. Upconverting is a matter of the processor doing the upconverting. A 1080p native display should look phenomenal with 1080p and really (REALLY!) darn good with 1080i. But, converting 720p, and 480p/i to 1080p is going to require a little more muscle out of that processor. If the processor is good, which it may be, then you will have a converted lower quality image that looks just as good as if it was on a native 720p, 480p, or 480i set.
2. Keep in mind that video processors don't have 80 different resolutins to deal with and process, but really only have 3 different line resolutions: 480, 720, and 1080. This means that video processing can be much better for those resolutions and a better set will allow some fine adjustment to make the processing look even better.
3. Finally, the LCD monitor attached to a PC has some limited internal processing, but not much, and typically the conversion really, REALLY sucks. A good outboard processor from a company specializing in PC video pixel for pixel mapping and adjusting, like an Extron USP-405 will allow good results when you port a 1024x768 image to your 1280x1024 monitor. Never as good as native, but PCs operate specifically in a pixel for pixel perfect world, while video almost always is dithered with shades of colors between adjacent colors. Video is a much different animal the computer.
When BD is available then I will be on board as long as 1080p/24 is supported on the player that I get. It should be though, it is one of the specified formats that is acceptable by the Blu-Ray Disc Association. I will likely get the player first and then dive into a decent 1080p DLP or LCD display soon after.