I have my MCE 2005 HTPC hooked up to my 60" Sony 1080p TV on a wall that separates my livingroom from the kitchen. I'm planning to get a 19" LCD HDTV to mount on the other side of the wall, running a DVI cable and audio cables through and up the wall, and cloning the desktop. Great setup for gameday.
However, the only 19" or similar sized HDTVs I've found are all 720p. Since my 60" Sony would be my primary monitor, I'd like to keep the resolution at 1080p, and not have to switch to 720p or 1080i when using the 19" tv. So, therefore, my question in the subject line: Will most, if not all, modern 720p televisions with HDMI downgrade a 1080p signal and display play it as 720p?
If not, my only other acceptable option would be a 22" or 24" monitor capable of 1920 x 1200 ($500 or more). For sound in the kitchen, I would need ceiling mounted speakers ($100 or more)power by my amp or built in monitor speakers. The 720p tv ($300 to $400) would be more ideal.