Suggestions for a Minimalist?

[BigDumbWookiee]

So, my current setup consists of a 50" rear projection 1080i LCD TV, and an Onkyo 7.1 surround system with speakers about 10" tall and 6" wide, a PS3 and a standalone BluRay player (which will get relegated to a new room). And frankly, the setup is just far too cantankerous for my tastes. I'm planning on moving soon, and until I have the ability to build a full on dedicated theater in my house (as in 100"+ screen, projector, sound proofed, theater seating, etc, etc, etc), Im wanting to take a much more minimalistic approach while still enjoying the benefits of being blu. Im looking for suggestions.

I'm happy with 50" and would like to stay with that, but want something with a smaller footprint, be it LCD or plasma. Something that has the option of being wall mountable is a plus, but Im leaning towards just using a discreetly styled cabinet (so I can hide any components). I've seen a lot of folks going back and forth about 60hz vs 120 hz, is it something I need to just see and experience myself, is it mostly a matter of taste? Or is it more like a 720p vs 1080p thing, where you just don't get the same quality by going with the lesser option? For a TV, I'd love to spend under $2K, but can go to around $2500 after tax or shipping. For that I'm looking for a Samsung, Sharp, Panasonic or Sony. The lower cost brands intrigued me, but I want something I can feel will have a longer life to it.

In terms of sound, well it depends on the final cost. Because Im not really going after the full theater experience anyway, I'm comfortable either using a TV with really high quality speakers, or a discreet all in one single speaker / sound bar system. I don't want to spend much though, maybe a few hundred. I have ultra sensitive hearing anyway, and find I hardly utilize my 7.1 system to its potential.