We took the plunge and joined the 21st century today; now we are the owners of a 32" Sony LCD TV. It was $799, a pretty good deal, and it has great features. It's full 1080p high definition with built in Freeview HD, 4 HDMI ports, and even a USB port. I put a USB thumb drive with an AVI movie in, and it was visible on the input menu straight away, and played the file with no fuss.
The HD quality is stunning - it even made live netball worth watching. Every freckle and hair shows up, and the 16:9 wide screen format became familiar very quickly.
We will buy a digital hard drive recorder as well. Our preferred device is in short supply, though, so I'll probably have to pre-order one through Harvey Normans.
Our old CRT television, with a Freeview decoder I bought off TradeMe, will go to the kitchen, running off an indoor UHF antenna. Then we'll have digital TV in both areas, without the annoying time lag between analogue and digital. That was a nuisance when cooking dinner and watching the 6pm news in two adjoining rooms.
We only do a TV upgrade every 15 years or so, and this will cost about $1300 - the last one in 1996 cost $2000 for a TV and VCR, and the dollar has shrunk considerably since then of course, so this is relatively cheap. Moores Law works its magic again.