Yes, 720p is worth it. I take it your going to get a PC monitor that is HDCP compatible (needed for the PS3) At 19inches I take it you'll be sitting in front of it like a computer monitor, right?
Also, please understand the difference between support and display. Any HDTV now-a-days supports 720p & 1080i, heck, even EDTVs support those, but what it ends up displaying is totally different. The only 1080i tvs out there are old CRT based ones, like your tube tvs or bigger bulky CRT Rear Projections. The only other type of tv that can really show 1080i are 1080p tvs. All 720p tvs will say they support 1080i but can not display 1080i, so they convert it to 720p, even if the tv says 1080i while showing it.
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But whatever you get, if you plan to watch HD blu-ray movies, like others have said, the display needs to be able to support 1080i input as the PS3 won't convert it to 720p for you. So a PC monitor for example usually doesn't have the compatibility to accept a 1080i signal. Some 20.1 inch PC LCD screens do have HDCP and 1080p support, once converted it's equal to around 945p at 16:9.
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