Do I need 1080p?

It depends on what you are using the TV for. If you want to use a game console, BluRay Player or other device that uses an HDMI (digital HD) cable, then yes. Component cables (analog HD) will not give you 1080p. Also, make sure your devices that hook up through HDMI are capable of outputting a 1080p signal. Most cable/satellite boxes only go up to 1080i. There are other reasons to consider 1080p. Most 1080p TVs will upconvert lesser signals to the native format of the TV giving you a better picture than the source device provides. Also, 1080p is "future-proof" technology. All components will soon output 1080p. Bottom line ... If you want to save some $, and don't really care about BluRay, you don't need it right now. 720p still looks pretty amazing. If you want the latest and greatest, and plan on keeping the TV for years to come, spend the extra $ on 1080p.