For home entertainment systems, true high definitions video is specified as 1080 horizontal lines of progressive scanning resolution. Though there are some TVs which are tagged or advertised as HD-ready, these devices are actually capable of only 720 progressive horizontal lines resolution also called 720p, and emulates 1020p when it receives 1020p signal.
Though there have been simple studies that show that more than half of consumers cannot differentiate between 720p and 1080p resolution, most of these studies have been done on relatively small HDTV units. When done on HDTVs which are larger than 32 inch in size, it starts to become clear that 1080p really is a good quality standard. The pixel size becomes evident on 40 inch screens and becomes less of a visual artifact and more of a disadvantage.
Fortunately, with large size screens of 40 inches and larger, there are very few models which are not native 1080p in resolution. LCD 1080p TVs have become the standard for home entertainment HDTV. Of course for commercial use, specially for commercial cameras and production, video resolutions are getting higher and higher, with more technologically advanced equipment. Even the new 3D TVs start out at 1080p and are fully compatible with the standard.
As far as consumer electronics are concerned, it would be a while before LCD 1080p TVs are replaced as the entry level for digital home entertainment systems. There is a certain joy in knowing that the quality is not half-baked and that you are getting the enjoyment that digital broadcast standard has to offer.