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HD will be lost on the majority of casual tv watchers for a while still.

You're right to say watchers. However, people buying a new set are heavily pushed towards HD. Anyone who has seen a display of TVs in a shop over the past 6 months will see plenty of HD demos next to standard sets.

When you see them side-by-side, standard TV looks terrible. They will be told that Sky HD is in testing right now (in the UK), HD-DVD and Blu-Ray is just around the corner... HD is the future, and that big TV is going to be out of date unless it is HD ready.

I can't really see anyone buying a new TV that is not HD ready (apart from small Kitchen/Bedroom sets). People want to enjoy their 'investment' for a good few years, and I'm certain the vast majority will pay the extra for HD.
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Hussein