I use a 42" 1080p as my computer monitor sitting like 3 feet away. I am very glad I spent the extra money on the 1080p.
Just to add, there is a predicted price war coming up on smaller flat screens (32-37" range) and larger plasmas. The article is American, but I'm sure there are a lot of parallels to the Canadian market.
http://money.cnn.com/2009/11/13/news...rs_television/