Is a 720p tv better for viewing larger text via PC from the couch, vs viewing it on a pc monitor or a 1080p tv? I believe video is best on 1080p hdmi 1.3 and games are best on 2560 x 1600. However if you want games, video, and computing all in one package than a 720p tv is best?

It really depends on your eye sight. I run at 1920x1080i (60"@ 9ft), 1920x1080p (37" @5-6ft), 1280x720 (26"@ 2ft), 1366x768 (37" @ 5-6ft) and 2560x1600 (30"@ 2ft, the text is "really small" on this display) on diff systems. At 1080i on a 60" set, the text is small but just readable for my old eyes. Younger friend with better eye sight has no probms reading text from 9ft away. As for gaming...well after using 2560x1600, its hard to go back to any of the lower rez's....