If you're coming from 29-inch, you actually lose some height when you switch to 32-inch widescreen, albeit the longer width. Upgrade guideline from 4:3 TV to 16:9 TVs as follows:
21 inch at least 26/28 inch WS
25 inch at least 32 inch WS
29 inch at least 36/37 inch WS
34 inch at least 40/42 inch WS
My personal opinion as regards buying HDTV:
1. Prioritize quality (over size) based on budget.
2. I never buy the cheapest. LCD and Plasma technologies are highly evolutionary. You essentially get what you pay for.
3. The eyes have it so let them decide which looks better. Comparing spec sheets is scientific but different makers have different standards of determining some supposedly relevant characteristics (contrast ratio for instance).
4. When in between models, compute the differential cost per day over the expected number of years of usage, then ponder what I have to pay/give up on a daily basis to afford the more expensive one. But if I can use the extra money for a potential investment, then it's another matter.