I think you got something confused
Tortch, I think you got 720p HD confused with 420 SD at the end of your post. Both 720p and 1080p are high definition pictures and do require any stretching to fit the screen.
As far as 1080p being better than 720p or 1080i, on the instruments you are correct, 1080p is better. But where you are missing the point is that the human eye is not an electronic instrument, and thus when you take into consideration screen size and viewing distance, often the human eye can not see any difference between 1080p and 720p. For example I have a 50" Pioneer 5080HD 720p TV that I sit 14 feet away from when I watch TV. At that distance a person with 20/20 vision can not tell the difference between 1080p and 720p. But I can see a big difference in the picture quality due to the 20,000 to 1 contrast ratio.
As far as your point about why do 1080p sets cost more, there are two reasons. The first reason is that it is the newest technology and thus the manufacturers are going to let the early buyers pay for it. The second, and more important reason is that it is MARKETING HYPE, to get people to shell out more money for "FULL HD" than they need to, so they can increase their profits.
As I said before, 1080p is great, and if you can afford it, go for it.
But in many cases there is no need for it, as the viewer wont be able to see any difference.
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