HDTV formats: 720p and 1080i

I'm holding off on buying a HDTV for now.  Amongst the 18 HDTV standards, two are currently is use.  720p and 1080i.  While 1080i seems to be the superior format, and the one likely to become a standard, there will still be stations broadcasting in 720p.  But HDTVs will accept both kinds of input, right?

Well, yes and no.  Most HDTVs will accept them as input, but then convert them to whatever format it uses.  1080i will get squished, and 720p will get distorted.  Granted, these are very nitpicky issues, but those of us who would be willing to plop down a grand or two for a HDTV will expect to get what we pay for.  The only solution so far seems to be computer monitors, which have 1080p resolution built in, or higher.  Unfortunately, even a 30" such model can easy cost you three grand (of course, you have the worlds largest home computer monitor, so that does help). 

Are there any good HDTVs out there that will display both 1080i and 720p?  Is it really worth bothering with, since even with conversion, you'd still get better-that-DVD quality?  Or what about using a 16:9 computer monitor as a TV?

My Apple 23" widescreen monitor does, but it's 2 grand.  I want to watch HDTV on a big ol 42" or higher screen.  I guess I'll just have to wait a few years (not that NTSC isn't good enough for now). 

Honestly, I'd think a 720p display of a 1080i signal would look better than a 1080i display of a 720 signal.  You'd have a little bit of resolution loss, but you'd still be getting each line.  Conversion to 1080i would mean you lose half the picture every frame, and the resolution upscaling would look bad.