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I have had a Panasonic plasma and V+ setup for the last 8 months and can recommend it.
Most channels, like the BBC, ITV etc are as near to HD as you could get, Dr Who for example was amazing!
Some channels though are crap and pixelated, Challenge for example, and the upscaling doesn't make any difference - in fact it highlights the fact that the picture is crap!
The V+ will upscale to either 720p or 1080i via the HDMI or component connector. It also depends on what Panasonic Plasma you have though as they tend to have extremely good scalers in themselves, particularly the panels rather than the TV's. What you wouldn't want is to do something like get the V+ to output at 1080, but get plasma to show at 720 as the original programme would have to be scaled once by V+ and then again by the plasma itself and that will more than likely degrade the picture.
Picture quality is only one of the advantages though, there are many others will the V+
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