It depends on the TV. I had a vizio 37 inch TV in the past and my new 46″ samsung blows it away even though its larger and mid size HD TV’s should look “better.”
Not all HD TV’s in the same size class are even remotely equal in terms of picture clarity etc.. Contrast ratio (amount of colors) and refresh rate (Ghosting?..like his football trail) has ALOT to do with image clarity.
Also some HDTV’s have poor scalers in them so if a ps3 is outputting 720p the TV is still for the most part upscaling it to the HDTV’s native resolution which if its large is over 720 so thats where lag comes in if the TV scaler sucks. The good thing about the 360 is that it scales before it gets to your TV so your TV doesnt have to do it.
For example scat of your dad has a 42″ and you hook your ps3 to it your still not seeing a 720 picture. Most likely your TV is upscaling it anyway. Unless you enable a special setting that displays the signal “as is”