Just a couple more thoughts before bed, Blake.
I understanding the big expentiture all in 1 go. Not a big console gamer I'd say sell that PS3 and you're set to buy HD-DVD + a library but that's no helpful advice. There is lots of talk about a price drop or similar bargain-minded announcement from the HD-DVD camp at CES shortly, wait a month or two then dive in!
As for the screen, I don't have much to contribute that's actually concrete. You know there is a designated 'screens' sub-forum, right? I'm sure there are HD1000u threads there, and probably one on the monoprice unit since they're so popular with AVSers.
It's another expense, but chew on this idea. Rather than spending $120 on a HDMI switch, think about $300 on a HDMI receiver (you call yours 'old' as it is). I don't know what audio the PS3 can pass from next gen discs, but HDMI audio decoding is a must-have feature on my next receiver to get the lossless PCM bit streams, so if that's something on your upgrade list you could kill two birds with one stone.
I'm inching towards re-doing my entire HT gear. Bought HD1000u, HD-A2 HD-DVD player and 28 movies in the last month, now I'm eyeing new speakers and receiver shopping. Then a new sub, then a new house that's more theater-friendly, good thing my wife likes movies too