That is often a big chink of the price - how well a tv can upscale, either SD to HD or between 720 and 1080; and then you get into deinterlacing. Better software to do this costs a bit more and that is where part of the difference in costs exists.
I have a Sony XBR8 and it it does a really good job of upscaling.
And LED sets are still LCD sets - they just use and LED as a backlight which provides a wider colour gamut (as well as other benefits - thinner TVs, etc)
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