Who cares what the sodding shape of the pixel is? Its still a 4:3 native resolution, therefore there WILL be detail loss...
... and you just say that because you get that "feeling"? ... yeah movie houses had no clue what they were doing when they came up with Anamorphic Widescreen ...??
Go view a 42" 1024x768 next to a 42" 1920x1080 from a normal viewing distance. You will not see a difference in detail when watching a HD source. I have done it and many reviewers have done it. You don't buy a TV to look at the spec sheet on the side of the box ... you buy it to watch real life content and for that, the above mentioned 42" is going to give much more bang-for-buck than the 32".