I fully understand your point. What I was responding to, was the comment you made at the end:
"i love it but am aware that no matter what i watch pixels have been added or taken away, so am i really seing what the director intended?"
I appreciate that as a consumer you want to watch something in the best way possible with existing technology. My point is that, although you will get closer by getting a Full HD set, you're still not seeing the film in its full resolution, so presumably your question would still be valid even with a Full HD set. ie you will still have the sense that pixels have been added or taken away.
I personally don't see the resolution as that much of a factor in terms of seeing content as originally intended. In my mind, what the "director intended" is not affected by whether or not I view a film in sd, 720, 1080 or in the cinema. This may affect viewing experience, particularly the difference between watching at home and at the cinema and of course, watching in Full HD at home is more enjoyable than viewing sd tv, but the director's intention comes across equally in all formats. I see this term of "director's intention", more as a marketing tool used by promoters of blu ray, and in fact, it is used in blu ray adverts. Since Blu Ray transfers usually use some form of grain removal/ reduction measures, the original film is being somewhat altered.
In response to your point:
1. An HD Ready tv is usually cheaper.
2. If your viewing distance is such that you won't benefit from the added detail that Full HD affords you, then why spend the extra money on it?
3. Not everyone is interested in HD. They are the only tvs you can really buy these days, but most people still watch dvds and sd tv. Why would they need or want a Full HD set if they're not going to use HD content.