Is there a max size limit? Is there a max budget? How far will you sit from the TV?
You linked a good deal, though every once in a while you can spend just minimally more for 1080p. I've seen Costco sell Pana 1080p 42" for $800, but that was a while ago. OTOH, the lowest price I've seen them sell a 42" 720p Pana was for the same price as the Sears deal.
I'd go bigger and better if the space and budget allowed. If this is for the BR, or garage or something, ok then.