I'm in the same boat. I need (yes, need, actually--the old set is dying) to replace an old TV. I wanted to wait for another year, but no such luck. I spent the whole week looking for a 1080p TV that would fit in the 35"ish space it needs to go in. At least now after finding this thread, I know I'm not the only one wishing for this!
For those who are curious why I want a 32"-35" 1080 TV, here are my reasons:
1. I want to be able to plug in my laptop and display a decent optical resolution without nasty resampling. A 32" 720p TV is under 50ppi -- fine for across the room, but just good enough for computer use with pixels that large. A 1080p 32" display would be up around 68ppi -- just right for working from eight to ten feet away or so.
2. I need less than 37" because my room is small.
3. I need more than 24" because the primary use will still be standard aspect-ratio TV. I'm a graphic designer and the display on my desk at work is the 1920x1200 24" Dell--lovely for computer work, even fantastic for HD signals at close range, lousy for standard definition display, and just too darn small for a living room TV (especially at 3/4 aspect ratio.)
I don't need speakers or even a tuner since I've got a kickass 7.1 surround system and HD cable service (no HD broadcast in my area yet). So I know I sound like the perfect candidate for using a large PC monitor like the Dell. That would be true if there was anything between the 24" 1920x1200 monitors and the 37" 1920x1080 TVs. I'd buy the Dell 30" RIGHT NOW if it had any input other than the dual-DVI which makes it impossible to use it as a TV (try finding a cable box with DVI-D Dual-Link output). Dell makes some very nice 720p HD TVs, but no 1080p, and only the crazy single input on the massive-res 30-incher. If anyone has any ideas how to connect anything other than a PC to that Dual-Link input, that would solve all my problems and pretty much make my whole year.
But again, the obvious question here is: Why the heck if Dell can make a jaw-dropping 30" 2560x1600-pixel display for $1100 can't ANYONE make a 35" 1920x1080 TV/display AT ANY PRICE? Seems like an obvious omission to me.
*sigh* Guess I'll have to buy another piece of crap tube TV to hold me over until TV manufacturers finally pull their heads out and realize that not everyone who wants "full HD" has a theater-sized room to put a massive TV in. Please, if anyone hears of new developments in this area, POST HERE and let everyone know!