Confused about digital TV choices

[satwar]

I've been having a tough time trying to keep up with all the technology changes in TVs these days and what is the most suitable technology choice for my situation:

First, and most important I think, is that I have a short viewing distance (small room) 6-8 feet. For this distance I find a 27" diagonal (Canadian) interlaced TV (I believe this is called 29" in US) just about right in terms of not being too overwhelming and the interlacing is not noticeable unless you look for it.

If I go to wide screen TV I was thinking that 42" diagonal would be a good choice as the height of the screen seems comparable to a 4:3 27" diagonal. Am I correct in assuming that flat panel plasma technology would be unsuitable at this viewing distance because of the relatively large pixel size in these panels. Further that LCDs don't yet commonly come that big yet. Furthermore that fixed pixel panels (LCD & Plasma) are poor at interpolating non high definition signal sources and require expensive scaler boxes.

I have hence come to the conclusion that CRT based wide screen is really my only realistic choice for easing myself into the digital age. Unfortunately they don't come in 42" diagonal sizes. Finally I'm not ready to tie myself into high definition TV yet, but grow into it as the market matures.

Which basically leaves me going nowhere fast with digital TV. Any opinions on my thoughts, or am I still out in left field with my Knowledge of the technologies?

Please help