It sounds to me like a lot of the misinformation is due to confusing 1080i content with 1080i displays. A 1080p display is superior to a 1080i display. True interlaced displays only apply to CRTs and some rear projection screens. Interlaced displays display only 1/2 the image at a time, alternating quickly between odd and even lines. This often makes the image appear unstable.
All flat panel and true 1080p displays are progressive. A flat panel that is capable of 1080i is merely able to interpret the interlaced signal in order to convert it to the screens native resolution. Not all TV are equal at this process. In fact some low cost or early screens will simply throw out the odd frames resulting in a 540p image.
1080i content 'can' look the same as 1080p but only when viewed on a 1080p display that does proper processing to reassemble the frames. Did you know that the first 1080p displays from sony can only handle 1080i input? This is because the sony engineers knew this.
The trick is that the 1080i spec is 60 frames per second where all of the even lines are in one frame and the odd in the next. for 24 frame per second content (like movies) both the odd and even frames are combined before being displayed on the progressive screen at full resolution. The catch is that the 1080i input tops out at 30 progressive frames per second. (this explanation is simplified and the 3:2 pull down is described more accurately earlier in the tread.
True 1080p is also up to 60 frames per second, but each frame is a full frame. however since the content is only 24 for movies, half of the maximum temporal bandwidth potential is not used.
long story short. Due to current content limitations the 1080p spec only is able to use half of it's potential, allowing 1080i (when being pushed to it extreme) to equal the current quality.
You might be asking why your bluray disk looks so much better then your 1080i cable content. This is just compression from your provider. the bluray disk is recorded at a MUCH higher bitrate then your TV provider is able to transmit. Your TV provider does this in order to squeeze more channels into the same pipe.
As a fun experiment (depending on your setup) try changing your bluray player output to 1080i and see if you can tell the difference. If you have all quality components they will be identical.
Once content begins to exceed 24 frames per second 1080p content will become more more important.