In a word....Yes. HD-ready sets offer vastly superior image quality to their analog counterparts. With a good line doubler (most HD-ready sets have excellent line doublers) your digital and analog video sources should look better than ever. Namely DVD. Hope that helps.
If you're not going to be getting a HDTV signal anytime soon, then I'd have to say the HD-ready set will be great for watching DVD movies, but in terms of cable/satellite signals, the tv may/will really accentuate how bad the signal that HD is, ie picture quality for SD may actually look worse to you, as a first impression.
It all depends on what your overall viewing may be
I was in your shoes a month ago. I have digital cable and only channels 100 and above are digital quality, below 100 is analog. I bought a 32 inch Sony HV600 HDTV capable and the picture quality is better on both digital and analog. I feel I made the right choice. A good 32inch analog set can be $500 and up. Some can cost almost as much as an HDTV capable. I paid $1,000. So the savings to buy an analog set wasn't worth it.
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