TV questions for ps4?

I currently have a 32 inch Panasonic 720p/1080i 60 hz 8ms response time. It was given to me a while back and was fine all last gen. It looks fine for this gen too. But looking to get a 1080p tv since they are so cheap. I'm just not sure if it is worth it. Also 120 hz vs 60 hz I've heard has a weird soap opera effect that worries me as far as input lag with console games. should I just get a 1080p 60hz tv? Probably looking at 40 inch. I don't like huge tvs that much. 40 is good to me. 32 is really fine as well. I don't even know if it's worth spending the money.

I had an old 42" plasma up until 2 weeks ago, when I bought this: Link

The difference is jarring. I don't know all the technical reasons why, but just to sit and stare at it is a joy. I took to rewatching all of my favorite blu-rays and playing some of my favorite games again. It's like seeing them all again for the first time.

Good luck deciding. :)