Professor, the tv in question (Panasonic 42PX70) has, near enough, a native resolution of 720p. This means that the
only format it can display natively is 720p. You say that it can display 1080i but with "a certain degree of descaling / conversion." This is exactly the point! The fact that the tv has to scale the 1080i picture in order for it to fit the screen means that it is therefore
not able to display 1080i natively.
So, just to clarify, when the tv is being fed with 1080i material, the tv has to downscale it to 720p (which is the screen's native resolution). This means that the tv is absolutely
not displaying 1080i content natively.
With 1080p content, just as is the case with 1080i content, it has to be scaled to fit the screen. Therefore it has to be downscaled to the screen's native resolution which is 720p. If, like you say, the tv converts a 1080p feed into 1080i then it still would not fit the screen.
To recap, the tv has a native resolution of 720p. This means that
both 1080i and 1080p need to have
exactly the same amount of scaling to fit the screen's native resolution of 720p.
One other thing, at the risk of creating more confusion - 1080i feeds actually need more conversion / processing because as well as the downscaling, they also have to be de-interlaced before they can be displayed by the the natively progressive tv.
Anyway, if someone can actually understand what I have said (because the professor thinks that everything has to be simple otherwise the masses are just too slow to understand
) then please back me up.