Thanks for the thorough comments Justeve...
I got this set last night and I'm afraid to say, I'm 90% sure its going back. The only thing that would be holding me back from returning it is the hassle of repacking it and deciding on another set, but I have a month to get around to it.
What this made me realize, is that, when I do return it, I'm not leaving the store without another set in my hand. It's like night and day, compared to the 2006 Viewsonic LCD I was using. The difference is so extreme-- I'd say it's almost like when I upgraded from CRT to LCD.
I actually like the set, love it really. I'd recommend it to anyone who has $1100 (CDN) to drop on a TV and doesn't want to do a lot of comparison shopping. I also think that this set will keep you well-equipped for a good few years to come (vs. a CCFL set).
I am mostly a fan of TruMotion-- it's different than what we're all used to, but I think its definitely the future so we'd better get used to it, eventually this effect will be standard on TVs and it won't be disableable. Watching HD movies with this, they have a totally different feel. It felt like I was watching a movie shot as a reality TV show. Kind of funny, but also kind of neat.
Also, another note on picture: I have the IPS panel. I do see minor bleed on a totally dark screen on the left half of the screen. I notice it because I looked for it, most people wouldn't. I expected this, so it's not a deal breaker for me. I expect this on any consumer-grade equipment right now. If I was spending $2500, then I would not expect it. Viewing angles - superb. Contrast in general, was also phenomenal.
But why would I return it? The price/features just don't add up for me. I definitely needed an upgrade from what I have. But I can get a 120 Hz CCFL set that has pretty awesome picture for $700. There are even 42" LED LCDs out there for around $700-$800 now.
Also, in terms of features, the Wi-Fi and Internet access on this TV is nothing to speak of. It still feels a little too experimental. I'd rather just plug in a USB drive when I want to watch downloaded movies, I'm not a big downloaded movie fan anyway. The built-in media player is poor, slow, and not a good user experience. Canadian users, despite having Netflix access in our country now, don't have it activated on this TV yet.
If it's time for an upgrade and you're not too picky about $900 vs. $1000 vs. $1100, I'd recommend this set to anyone. The way I see it, the approximate $300 I'll be saving is something I would rather put into a new receiver or laptop. Then I could sell my next set in a year or two and THEN buy an LCD LED, when they are cheaper and the extra features like Internet are more "polished". I wouldn't call myself a total videophile, but I am discerning.
I am going to take a look at the LG 42LD520 and some other sets soon and decide what I'll do based on what I see.