Planning on buying an HDTV soon

I'm planning on buying an HDTV, and I know some things about them, but I should consult some techies because they can help me make a better purchase. It would be the first HDTV I own.

I plan on buying a 32" LCD TV. I will use it to play PS3 and Wii games, and watch BR (and DVD) movies/anime off the PS3.

First thing is, I have a friend that says 1080p isn't needed unless you get a 50" screen or bigger. He has owned a couple of HDTVs before and I trust him, but I just want some people to confirm this. He says that 720p is all I need for a 32" HDTV, which is the size I want. He says that you can't really discern the difference between 720p and 1080p until you get to the big screen sizes. Is this true?

Also, is 60Hz good enough for a refresh rate? And should LCD be fine, or should I consider these new LED-LCD screens?

Lastly, I will go to a Best Buy and select the TV I want, but what are good name brands for HDTVs? I hear that Sony, Toshiba, and Panasonic are all really good for HDTVs. Is LG good for LCD HDTVs? They have some nice prices for their TVs.

Anything else I need to know about HDTV purchases?

Thanks to all who help.