To get the best from a blu-ray player, you would ideally have a television capable of displaying 1080P
Ideally yes, but IMO the difference between interlaced and progressive is only noticeable in tv's over say 40/42' in size. 1080p just happens to the "the latest thing" for now.
Billybob – Blu Ray discs are still quite expensive compared to regular dvd's, you could always sign up for a free trial at Lovefilm or the like and rent a few, the difference is quite noticeable, although my mrs can't tell 🙄