What I am amazed at is that anyone with a lick of sense could possibly believe that a upconverted 480p picture could ever match or come close to a 1080p picture. These folks must need glasses and don't use them when they watch true HD on a calibrated HDTV! You can not improve what is not there - never could -- never will!
Nope, but I bet you couldn't tell a well upconverted SD DVD (like from a XA2 or Oppo) from a Blu-Ray or HD DVD on a 32" 768p LCD from 10 (or even 8) feet away. I can tell on my 57" 1080P from 6 feet away no problem. However, I watched The Last King of Scotland upconverted by my A20 this past summer/fall (I can't remember.) and didn't want to scour my eyes. I still have two CRT's that I watch occassionally.
Sorry, but upconverted SD DVD doesn't look that bad (especially with animated titles) on anything under 65". The sound downgrade is more disappointing than the picture.
I will say this. I wasn't impressed by HDTV until I saw my first Blu-Ray's and HD DVD's on display at Fry's. When they showed upconverted DVD's over a year ago, I just shrugged. When I saw HD movies I said, "Aaah... That's what all this HD stuff is about." I am perfectly capable of waiting for Blu-Ray 2.0 standalone prices to drop. I waited 35+ years before taking the plunge into HD. I can wait 6-12 months for Blu-Ray to act right.