The main divergence in the US is between 720p @ 60 and 1080i @ 60 (which is basically 1080p @ 30), no? I'd think ABC/ESPN went with 720p b/c they figured 60fps was more important for sports.
That doesn't stop 1080i from looking spectacular on a "720p" plasma, though it can be jerky. Dunno if that's a 3:2 pull-down artifact or something else, as I don't know DiscoveryHD's source.
I have been looking at what type of HDTV I should buy for the last week or two. Here is what I have arrived at (although it may not necessarily all be correct).
Interlaced HD standards like 1080i are really intended for CRTs, and I have seen some articles questioning whether they really should have been introduced at a time when everything to moving from CRT to LCD/plasma for display and CCD for cameras. I think the difference is small, but 1080p is definitely better for technical reasons.
There are three serarate issues here.
1) 1080p HDTVs vs 1080i HDTVs:
1080p capable HDTVs will have definitely better image quality than 1080i HDTVs (when playing movies). But you probably need a big screen and fast motion to see it. The reason is that movies are stored in 1080p/24 (film movies are captured at 24 frames per sec) and are converted to 1080i/60 using 3:2 pulldown (
http://en.wikipedia.org/wiki/Telecine) if you TV can't do it. To convert 1080p/24 to 1080i/60 requires 2 frames to be mapped to 5 (3:2 pulldown). Doing this gives a different weighting (2:3) to the odd and even frames which creates flicker artifacts in areas that are changing between frames. Also the intermediate frames are created by interlacing two 1080p frames which are 1/24 seconds out of sync. This can create aliasing artifact effects in areas that are changing rapidly. 1080p HDTVs are supposed to cost more than 1080i HDTVs, although I am not sure why they should since the only extra cost is the upscaler to convert first gen HD-DVD player 1080i output to 1080p.
2) 1080p movie player output (like PS3) vs 1080i movie player output (like the Toshiba HD-DVD player). As Mintmaster pointed out, inverse telecine can be used to perfectly re-create the original (
http://en.wikipedia.org/wiki/Telecine#Reverse_telecine_.28a.k.a._IVTC.2Finverse_telecine.29). If your 1080p HDTV is able to convert 1080i to 1080p (as all 1080p HDTVs should) then you would get exactly the same picture on the Toshiba movie player as the PS3. However there can be problems with this. To convert 1080i to 1080p, the TV has to detect which are the even and odd frames, drop the interlaced frame created by merging two 1080p frames, and output the original 1080p at 24 frames per second. I am not sure why any movie player should not also output 1080p if that is the native storage format, but the first gen HD-DVD players all seem to output only in 1080p, while the second generation ones output 1080p.
http://en.wikipedia.org/wiki/Deinterlacing
3) 1080i vs 1080p in games and TV output.
All HD broadcasts at the moment seem to be at 1080i/60 or 50 (30 or 25 interlaced frames per sec) at the moment. Converting from 1080i to 1080p as in movie players probably isn't possible for broadcasts, because it shouldn't be done anyway for video camera broacasts scanned natively in 1080i format. On top of that, some sources say that video editing can sometimes switch even and odd frames in 1080i leading to faulty detection of even/odd frames, reducing image quality. If it is possible to deinterlace 1080i movie broadcasts to get 1080p then a 1080p TV would give you a better image quality as explained in 1) above.
Also 1080p/30 or 25 and 1080p/60 or 50 I think will eventually come. The only reason I can see for not doing it 1080p/30 or 25 now is that the broadcasters use cameras that output 1080i/60 or 50 (30 or 25 frame rate), since the broadcast bandwidth will be the same, and 1080p can easily be converted to 1080i in a set top box for those who have a 1080i only TV.
For games, I don't think 720p,1080i, or 1080p matters, since game image quality is less than perfect anyway.
Personally I have decided to buy on the "more the merrier" principle. An HDTV supporting 1080p supports more standards and is more future-proof, and I can't see why it should cost a whole lot more than a 1080i LCD and plasma TVs since they have the same number of pixels, unless 1080i is cheaper in order to offload old stock. I am going to wait for prices to drop a bit before buying. I have also decided on the PS3 as a movie player. People have complained that the first gen Toshiba player is very slow to start up, whereas the PS3 is fast. The second gen Toshiba player rectifies this, but is quite a bit more expensive than the PS3. Also I am not sure if HD-DVD will survive as a format in the long term. The same may be true for the PS3, but you get a games machine and a computer for the money even if BD fails. Again I will wait the price drop with 65nm fab before buying.