My anecdotal experience is that people fall who've purchased LCDs fall in to 2 camps:
1) People who are mad on HD
2) People who just appreciate the space they save/the look in general
The first lot are typically already Sky/Virgin customers - particularly Sports subscribers. If they don't subscribe, they're probably willing to at least invest in a Freesat setup to make the most of their investment.
The second lot really don't care about the picture on their screen, and will happily have their DVD player/PVR hooked up via SCART.
The second lot will also probably have their Sky box set for 4:3 CCO (the default shipping setting, still, after all these years !!!) so just about everything will be in stretchy vision.
I was in a small pub in deepest Wales last month. There was a brand new Sky box in the bar, feeding via Scart into a nice 40 inch glass fronted flat screen. It was tuned to a radio station when we entered the place, and I could see nasty PAL strobing on the menu banner. (Of course, that's the other default setting Sky boxes still have, Composite rather than RGB interface).
However, the true horror of the set up became apparent when the landlord picked up the remote, and selected BBC 2 Wales for a rugby match. Yep, 4:3 CCO, stretched to fill the screen.
I was tempted to grab the remote, and with just half a dozen key presses put things right, but Mrs Markymark told me not to worry, turn round so my back was facing the screen, and get on with my pint. Sound advice from her I think, given the rather parochial nature of the pub, and us being
'the only tourists in the village'