I walked into Best Buy last night, as these are on sale and the 43" is selling for $299 at the moment. There is also an open box for $267.
Unfortunately seeing the TV in person confirmed my concerns. The pixels are way too big and I can clearly see the black lines in between the pixels. It looks like someone put a black screen mesh on the surface of the display. Compared to all the other TVs, this one had terrible jaggies on computer-generated graphics such as animation, logos, and large stylized text. "Fine print" text at the bottom of commercials looked absolutely terrible, whereas it was perfectly readable on the 1080p TVs.
Granted, all the other TVs in the same size cost significantly more, in some cases twice as much or even more.
I think this TV has its strengths and its weaknesses. It's strengths are exceptional contrast ratio, detailed color adjustment/management features for calibration that are typically only seen on high end TVs, and very low price. It's weakness is the low pixel density, visible screen door effect, and and odd 1024x768 resolution (720p is supposed to be 1280x720).
My opinion is that if your viewing distance is far enough (or your eyes not so sharp), this is an incredible deal for a TV with excellent color, unbeatable contrast in its price range, and top-notch calibration adjustment controls. So this is probably the case for most people, but at my personal planned viewing distance of 3-4 feet in front of an exercise machine (I can't go back any further), the low pixel density and the large black gaps between the pixels is simply unacceptable.
I really appreciate this TV for how it stands out for what it can do, but unfortunately it doesn't suit my particular scenario. As close to the screen as I'll be, I probably need a smaller sized 1080p TV for the higher pixel density.