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Get a LED, you'll love it. Wish I could afford one and dont get anything below a 120hz.
Plasma panels still have the best picture quality. LEDs are overpriced. In fact, LED panels are just LCD panels with different backlighting. Regular LCD panels use a CCFL backligh, while LED panel are LCD screen with LED backlight which is brighter and uses less energy. Heck, some LEDs aren't even backlight, they are edge lit. That's mostly the only that are like .0004 inches thick though. The best picture you will find still belongs to the Pioneer Elite Kuro which is a 3 year old panel. Those are bigger than you want, but I'm just pointing out that modern LCD technology still isn't up to par with Plasmas from years ago. I would check out the line of Panasonic panels. Panny plasmas have a reputation for excellent picture quality and affordable pricing. They have a 42" 1080p for around $700. That's just as cheap as any LCD and cheaper than any LED with better quality. No brainer really.
Here is some useful reading
www.plasmatvbuyingguide.com
www.avsforum.com
Happy shopping
I have a Samsung 52" LED, and the picture is incredible. I've had plasma's and LCD's, and I have to say my Samsung LED has given me the best picture... especially with the BluRay playing. Sometimes I jump because I think things are coming out of my TV... it looks THAT real. My TV: http://www.samsung.com/us/consumer/.../LN52A650A1FXZA/index.idx?pagetype=prd_detail You can ask CH3NO2 what he thought the first time he came over and I had Transformers playing on it. He stopped at the door, his jaw hit the floor, and he was like, "Holy fuck"!!
With that being said, in my old job, we had plasma's, and they ran 24/7/365... after about 14 months, we'd have to replace them because they would die. Plus the heat that the plasma's put out is crazy. Our "tv room" would be a solid 12-15 degrees warmer than any other room in the building, and that's with 2 40" plasma's. Those are the main reasons why I personally don't care for plasma.
Just to respond to the last part, I don't know how big the room was that the two tv's were in but my living room doesn't get any hotter from my plasma. Also, the bulbs in modern plasmas are rated at the very least 60,000 hours. If you left it on 24 hours a day it will still run for 2500 days (almost 7 years).