Made this decision just this past fall. Went for an LCD model, a Sharp Aquos 46 inch. Very happy with it for sporting events etc, and my kids can't get enough Wii playing!
the led tv's are lcd tv's that utilize the latest lcd systems and have led backlighting instead of flourescent backlighting which is often used on many lcd models. plasma systems have been improved to eliminate most burn in situations. they operate with much heat requiring internal cooling fans.they are higher in electrical consumption in most instances.