Suggestion:
Depends on how big a tv you are willing to buy. If your planning on staying in the under 40" range than I wouldn't bother. The difference between 720p and 1080p in the smaller (< 40") TVs is not noticeable, especially at 32".
If you are willing to spend a few bucks and buy a bigger tv than yes of course you will notice the difference between 720p and 1080p.
Personally, I have a new 40" 1080p capable tv, but I have the 1st gen 360 without the HDMI output so I can only use component. 720p is absolutely stunning, and I am not spending $250 on a new 360 just for 1080p. Especially when not all games are in 1080p.
If money is no option, then hell, why not?

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