Question about a 26" 720p compared to a 1080p of the same size.

[cstyle2000]

Now, I've had a blu-ray player for nearly 3 weeks and love the noticeable differences between the blu titles and dvd titles. But I'm watching these things on a 26" 720p LCD screen. I know that 720p isn't the highest resolution and I also know that 1080p is the way to go (and preferrably the larger the better). But I was just wondering if 1080p's that are as small as my 26" 720p are a huge step forward in quality, or if the quality level of both resolutions on that size of a screen is barely noticeable at best? Now, I do plan on buying a larger, 1080p screen someday when I am able to afford it, but since that someday is still a long way away I was just curious about everyone's thoughts to my question.