Plasma still has the best overall PQ, and Panasonic is probably the best available-I checked out the latest V25 Panny (with the useless, IMO 3D capability the industry) and a 2D blu ray demo of the Grand Canyon looked really stunning, with incredible depth of image (forget 3D, who needs it when 2D looks this good). Best PQ I've seen since the Pioneer Kuro, but it's way out of your price range. The 50" S2 can be had for close to a grand, and is probably your best bet. The usual plasma drawbacks (power consumption and heat) apply, but they aren't as bad as it used to be-I've seen charts comparing the cost of operating a plasma vs lcd over a year, and the difference is pretty negligible. The Samsung plasmas are very close to the overall performance of the Panasonics, and are definitely worth considering if the price is right.
LCD sets are definitely better than they used to be, but they still have the traditional lcd drawbacks (motion artifacts, black level and off angle viewing). The most impressive lcd I've seen in the last few weeks was a Sharp 60", a regular CFFL (not LED backlit) panel that had really good (for lcd) black levels and much better off angle viewing than the Samsung lcd that was right next to it in the store.
I'm leaning towards a 63" Samsung plasma at the moment-my cabinet can't handle the weight of the 65" Panasonic S2 and I don't like the thought of downsizing to a 58" after getting used to a 61".
A good friend has a 42" Panasonic plasma in his listening room with a pair of Magnepan MMG's, and the sound is so good with the 2 channel track of most blu rays that it makes you question the need for surround sound at all.
The latest LED are still too expensive, and
