I just bought a Sony 50" LCD (actually it is LCoS) projection TV, its the SXRD model... I gotta be honest, SD doesn't look near as bad as I thought it was going to. Some shows look like total shit and other shows on the same channel are easily watchable.
Tube TVs still look better and will always look better... If your planning on getting a 32" LCD TV, I would say don't and go buy another 32" CRT... 'specially if your not going to use HD. It really, really depends on your signal/channel quallity, etc.
HD is pretty darn cool, when it is good (Discover-HD does great)... But I have notice that a lot of crap isn't HD (even though its on my HD channels) or is SD that has been streched. I'm dumping my cable co because their HD service and selection is pathetic. Once you see it (HD) you will hate SD and HD is pretty much a "gotta have" on a big TV. YMMV.
Go buy one and return it if you don't like it.