If it's mainly for 360/P3, then no, very few games actually are 1080p. For that, if you are only really doing that, get a cheap 720p (these games actually don't even really play at that truly either, very few titles are actually 720p or 1080p--these resolutions are way too high for these machines to handle smoothly, which is why games aren't released with that in mind, because they want everyone to play them flawlessly and not get negative backlash from the market). So from a gaming perspective on the console, there's no reason to get a 720p or 1080p TV for the hundreds to thousands it will cost.
However, I will still recommend a good 1080p TV. My reasoning is that while you mainly will use it for gaming, it's a display you will likely use for years, years, years. You'll eventually have new consoles, new machines, new whatever to hook to it and everything is going up on resolution/quality, so the 1080p will get used eventually. Plus, if you ever do get into PC on the TV, you'll absolutely love 1080p capability. I play a lot of my games from my PC on my 42" 1080p tv (and I can set the res to 1920x1080 so 1080p is actually used). I run my dvds this way, I play my games this way, etc. Since the res is high, I can even browse the web and use it as a monitor when I feel like being on the couch with a wireless keyboard setup (with my logitech MX AIR mouse too!).
So if you're gonna drop the green on a TV. Get one that will be useful in the future too. Go 1080p and make sure you have plenty of connections to plug things into for all your future devices too. It's actually not that more expensive if you really compare. And consider that soon more and more things will be moving towards 1080p. Do you want to swallow the cost of a new machine (console for example) and a TV less than 1080p for the future twice? Get 1080p now. It's not that much more pricey. And it does everything below 1080p, so it doesn't hurt to be prepared.
At 32", if there is a significant price difference between a 1080p and a 720p television, just get the 720p. With a screen of that size, you won't even notice a difference.
You are about to answer a thread that has been inactive for more than 6 months. If you still wish to proceed, please ensure that your posting is original and does not duplicate or overlap any prior responses to this thread.