Hmm... I guess it depends on what you're used to. I went from a 27" regular TV to a 42" widescreen HDTV in 2002, which is the TV I still have right now, so I've never seen the current or last gen consoles on anything but that TV. Well, sure, I've seen them in stores and stuff, but you know what I mean.
Point is, I have absolutely no complaints on the graphics. Maybe had I started with a 30" I would have the same concerns as you. I'm kinda glad I didn't. I like liking what I have.
KM