I've ran my xbox 360 through my 20 inch widescreen samsung at 720p, and been happy with the quality. I can't see how an extra...er....17 inches is going to make a difference...
The difference is the native support. If you downscale a signal, yes, it'll look worse at 720p or even 1080p if your monitor possibly supported more than this. But at native, 720p or 1080p could look just as sharp as each other. Just not as much pixels...
Went on the Playstation Store last night (this morning...) and started downloading demos and 720p/1080p videos to test for when the TV's setup Sunday.
There isn't much to choose from, which is a shame.
I'm also not entirely sure on the controllers sensetivity on the shoulder buttons, or analogs. They dont' seem as sharp and responsive as on the Xbox 360 controllers. For example, on the 360, you can move the analog slightly and it'll respond. The PS3's seems to have a dead spot.