As true with all technology products, you'll continously "get more for less" over time. Plasma/LCD prices will drop, and their capabilities will improve. Every new model will claim new features (whether we really needed them or not), and improved performance (whether we could really tell the difference or not). If you're looking for a definitive time to buy where you won't feel like you've missed out on a latest feature or the latest price drop, you'll wait forever!! 
Both plasma and LCD technologies will improve and will get cheaper (inflation adjusted). The tradeoff for a buyer is to wait for a better deal and miss out on the better visual entertainment experience in the interim. You need to decide for yourself whether the current price/performance ratio is good enough or not. If $2000 for a 42" plasma is still too expensive for you right now, I suspect the same model (or its replacement) will be a couple of hundred $ cheaper (inflation adjusted) in 6-12 months. At least, that's what my crystal ball is telling me...
Both plasma and LCD technologies will improve and will get cheaper (inflation adjusted). The tradeoff for a buyer is to wait for a better deal and miss out on the better visual entertainment experience in the interim. You need to decide for yourself whether the current price/performance ratio is good enough or not. If $2000 for a 42" plasma is still too expensive for you right now, I suspect the same model (or its replacement) will be a couple of hundred $ cheaper (inflation adjusted) in 6-12 months. At least, that's what my crystal ball is telling me...