Some pros and cons of different display devices:
Plasma
Pros: High brightness, high contrast, less digital artifacts, closest to CRTs in picture quality, looks stunning when new.
Cons: Expensive, burn-in, high break down rate (Phillips repaired 13,000 units last year), picture quality degrades after 4 weeks of normal use, plasma cells loose inert gas over time and in high elevations, uses lots of power (42" set consumes over 400W).
LCD
Pros: Slim like plasmas, good brightness and contrast, use much less power, more models available in 1080p that work great as computer monitor for gaming. Burn-in almost non-existent. The 1080p models are fantastic and rival the best plasmas for less using Cold-Cathode-Flourescent-Lighting (CCFL) back lighting. This is currently the best option out there.
Cons: Lots of older models out there in varying sizes with old style back-lighting. Back-lighting lasts 3-4 years before it goes bad and then panel is dead. CCFL will last twice as long, LED based backlighting will be out next year and offer longer life + better birghtness & contrast. LCDs over 40" are very expensive.
DLP
Pros: Best band for the buck if you want a picture bigger than 42", no burn-in and uses less power.
Cons: Brightness/Contrast not as good plasma or LCD, but newer models from Samsung & Mitsubishi are quite good. Color wheel causes "rainbow effect" (RBE) that is seen on fast moving motion (dark object moving against a light background). Only a few people see RBE, but once you do, it is bothersome. Newer RGB LED lighting removes color wheel, but is not as bright and has some picture geometry issues that will be resolved by models available by Aug. 2008.
Conclusion: If you want to buy now, a set that is up to 40" get an LCD that uses CCFL back lighting and is 1080p compatible. A 40" set should cost about $2000. The best ones out there are from Samsung and Mitsubishi (LN-S4095 and Mits 37"). If you want something larger than 40", then consider the new DLPs from Samsung & Mitsubishi that are the new high contrast models capable of 1080p.