Many people live in apartment dwellings where bigger screens wouldn't blend as well as smaller ones. I live in Hong Kong a few months of the year and almost all people, even lower high class, live in apartments. A 40" may fit in a living room, but what about the bedroom? Even a 32" would be too large sometimes.
I posted a resolution vs. viewing distance chart a few weeks ago, which showed that one would need to sit 7 feet or closer to a 32" screen to get the full benefit of 720p. For 1080p (full hd), the distance is 4.5 feet. Since few people sit that close in real life, a 1080p 32" screen is superfluous. Unless you're using it as a computer monitor.
Leo
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