I sit about 6 feet away from my 37" 1080p LCD. SD is passable, DVDs look great (with a 1080i upscaling DVD player). Unfortunately I'm still waiting on my cable company to get their heads out of their asses to give me HD. My ceilings are average height, and I think the TV is at a very comfortable size/distance. I have it on a squat TV stand that puts it at eye level when sitting on the couch. It's big enough to look big, but not so big at the viewing distance that a) picture quality suffers or b) picture's too large to take in.
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I sit about 6 feet away from my 37" 1080p LCD. SD is passable, DVDs look great (with a 1080i upscaling DVD player). Unfortunately I'm still waiting on my cable company to get their heads out of their asses to give me HD. My ceilings are average height, and I think the TV is at a very comfortable size/distance. I have it on a squat TV stand that puts it at eye level when sitting on the couch. It's big enough to look big, but not so big at the viewing distance that a) picture quality suffers or b) picture's too large to take in.