HD Ready is a standard created by the manufacturing industry to support the HD standards as defined by the EBU and individual EU broadcasters.
Broadcast HD in the EU comes in two flavours, 720p and 1080i both of which are HD but obviously an agrument can be made that under the current standards anything less than 1080p is not true HD.
EICTA HD Ready specs....
1. Display, display engine
The minimum native resolution of the display (e.g. LCD, PDP) or display
engine (e.g. DLP) is 720 physical lines in wide aspect ratio.
2. Video Interfaces
The display device accepts HD input via:
Analogue YPbPr1, and DVI or HDMI
HD capable inputs accept the following HD video formats:
1280x720 @ 50 and 60Hz progressive (“720p”), and
1920x1080 @ 50 and 60Hz interlaced (“1080i”)
The DVI or HDMI input supports content protection (HDCP)
However as always the economics and technical limitations of the market come into play, simply put HD Ready sets a minimum spec for a HD display which will provide the level of performance a consumer would expect given the minimum 720p broadcast resolutions.
Of course in an ideal world the minimum resolution would have been 1920*1080 but the TV market simply could not offer those products even at a premium price, the technology wasn't there yet and even now there are only a handful of displays on the market and then only in Japan and the US at huge prices
Worth remembering that SONY coined the phrase "True HD" to combat the Xbox360.
In terms of HD displays the HD spec allows for two HD resolutions and as long as you buy a HD Ready display you are buying a TV that can accept any of the future HD sources. Like I said buying a 1280*720 or 1366*768 display now will be far cheaper than buying a 1920*1080 display and at this time it's likely there will be plenty of native 720p broadcasts to maximise the performance of these lower res panels. If you feed a 1080i source into a 1280*720 display it will be scaled down but still blow standard definition out the water but the flip side is if you have a 720p source feeding a 1920*1080 display the source will have to be scaled up and still far surpass any SD material.
As you may have figured out there are still compromises to be made but I suspect for many the price difference between the displays and the selection at the "lower" end will be far more attractive to the average consumer.