Also if tv is only .4MP where is the loss of quality when camcorder is .8mp?
This has to do with the number of "effective pixels". I can't give a detailed explanation, but your typical 800,000 pixel video camera has 400,000 (i.e. just enough) "effective pixels", and the CCD is 4:3. So with the HC35, in widescreen mode it cuts off the top and bottom, and you lose some info. The Canon, even though it is also 800,000 pixels is more optimised for widescreen and you don't lose any quality... same with the Sony HC44.
Will the difference be noticable? It won't be a huge difference, but on a 42" plasma, yes I think you could see the difference. With a large widescreen like that as your primary target, I think you want a model with "true widescreen".. in the Sony line that means the HC44 (and no DV-in), or jump to the HC46. You can get a HC46 for £308
http://www.pricerunner.co.uk/sound-a.../551099/prices
Mark