Halleluja!
To both points.
Disregarding for the moment the trend towards mobile, the trend in the home is clearly towards the displays getting larger, and since rooms don't grow with them, that the angle of view covered by the screens is increasing. So resolutions need to increase to fill that view with information (and to reduce the visibility of various pixel-level artefacts).
Usage patterns determine needs, clearly, but the trends are obvious. As far as TV resolutions go, we'll probably be stable at 1080p for a fair amount of time - my cineast friends are already complaining though, and want digital cinema distribution quality.
Yeah, I was quite surprised to see 42 inch 1024 x 768 plasmas commanding a price similar to a reasonable 42 (or higher) inch LCD. I was even more surprised to see how good the lower res plasmas looked, at least up until you got pretty close.
I prefer the look of plasmas, but in front of TVs I have a tendency to creep towards the screen as I play, almost ending up pressing my nose against the screen, drooling. I like to be closer than for tv and movies anyway. If next gen console games target 1920 x 1080 it would bother me knowing I was missing out.
It would be interesting to know what range of sizes and resolutions of screen gamers are playing on now, and seeing how that ties in with HDTV sales (how gaming lags behind sales). MS and Sony seem to want people to keep their consoles in their front room under their main telly (Blu Ray, HD movie streaming, Kinect needing lots of space, media centre extender etc) and as you say that means bigger and bigger screens, at least for the moment.