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Sure, absolutely - I did say "for nearly everyone" :-) You need to include your eyesight also, and things like how many people might be watching the set at once - eg for 6/7 people to watch a 37" set from 5 feet away, the outer seats will be at an uncomfortable angle to the screen.
Don't get me wrong, I think 1080p is great (spent a fortune on one after all!). However, most people buying such TVs are wasting their money by not buying a big enough set for their viewing distance. While 720p sets are still considerably cheaper (they won't be for much longer admittedly), this is quite important, as nearly everyone is better off with a 50" 720p plasma than a 42" 1080p - the former has nearly double the ideal viewing distance.
For those small number who actually will sit close enough (5 feet!), feed it HD etc, a 37" 1080p set is a great deal - you get all the resolution for a cheap price, and don't have a huge honking set dominating the room. To be fair though, absolutely everyone thinks their set is enormous at first, but you get completely used to it in a week and want a bigger one (wish I'd gone for the 70", couldn't begin to afford it though!).
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