For me, TV watching comes down to how effectively does it display the type of content I'm interested in. For sports, 1080i, for dramas, 720P. For movies, 1080p at 24fps.
My TV is always located in a dark room, so lighting issues aren't a problem. The upside is that deep blacks matter a great deal more than in a semi-lit room.
Since all my inputs come from 3rd party boxes, the TV UI doesn't really play a role.