LCD vs. Plasma TVs - Both are better than ever, and the best sets raise the bar for picture quality
There are reasons to opt for one over the other, though. With LCDs, you'll have a wider choice of 1080p sets than with plasmas, and the price premium over a 720p TV is usually smaller. You'll also have more screen sizes to choose from, including sets smaller than 42 inches-typically the smallest size for a plasma.
LCD TVs are generally a bit brighter than plasma, and their screens are less reflective, so many look better in bright rooms. They're also better for playing video games and for use as a computer monitor because they're not subject to burn-in from fixed images displayed for a long period, as plasma TVs can be. (Burn-in might have been more of a problem with early plasma sets. We've seen no evidence of permanent image retention in our short-term tests, and recent anecdotal evidence from our own staffers and online forum participants hasn't turned up any burn-in issues in typical long-term use at home.) LCD sets use less power, but the differences aren't that great.
On the other hand, plasma TVs generally cost a bit less than LCD sets of comparable size and quality, though the price difference is shrinking. The best plasma TVs are better than LCD sets at displaying deep blacks and tend to have better contrast, which makes for rich, natural-looking images, especially in dim lighting. They're also better than LCDs at handling motion without blurring the image, though some new 120Hz LCDs are showing improvement in that area.
Another major advantage: Plasma TVs have a virtually unlimited viewing angle, so the picture quality doesn't deteriorate when you watch the screen from off-center. With most LCD sets (and rear-projection TVs), the picture loses some contrast, color, or brightness as you angle away from the center. You might not notice this too much with bright images and vivid colors like you'll see in a football game, but the degradation in quality can be obvious with other programs.
Source - ConsumerReports.com