Yes, I have been using my Oppo with my new 42PX60U using DVI-->HDMI. I was also concerned about the Faroudja chip marcoblocking issue with plasmas. I read the Oppo thread and took the advise on how to diminish the macro issue with the Oppo settings.
I've seen no marcoblocking after watching about 8 hrs of DVD (1080i)... I'm very
happy with the Oppo.
PS/ I can't comment on 8th gen comparisons...