The 2006 "Deadline" for conversion to ATSC DTV is pretty much a dead horse. The current NTSC analog television signal that's been around essentially since prior to WWII will still be being broadcast by commercial stations well into the next decade. A provision of the law requiring the switchover delays the conversion of broadcast spectrum until such time as 85% of televisions IN USE are capable of receiving the new standard whether by built-in tuner or external converter. Currently, a staggered production mandate is in place, with at least 50% of US Market sets of screen sizes 36" and larger produced in 2004 being required to be capable of directly receiving Digital Television signals, with 100% of such sets being produced in 2005 being so capable. . Year by year, the smaller screen sizes fall under the mandate, incrementally bringing all US Market TV production into line by 2007. Recording devices, such as VCRs and recorders, are also affected. Meanwhile, increasingly inexpensive "Set-Top Boxes", or decoders, will proliferate, allowing older NTSC-Only TVs to display ATSC/DTV. Additionally, those viewers exclusively receiving their signals over cable or satellite (some 75% of the US Market) are more or less unaffected, as the transition applies only to BROADCAST television. Both cable and satellite providers are doing some serious footdragging here, with no near-to-mid-term resolution in sight.
Finaly, "HDTV" or High Definition Television, that fabulous "like looking through a window" viewing experience will remain, even with full adoption of Digital Television, a rarity, confined to special events and such things as Pay-Per-View movies. True HDTV eats a great deal of bandwidth ... bandwidth which the broadcasters would rather divide into multiple revenue producing streams such as messaging, "Interactive TV", and commercial data transmission. By and large, the typical DTV picture quality will be about what you get with current DVD or satellite.
If you intend to purchase a TV in the near future, decide carefully whether you require "HDTV" capability. If you are a committed technofreak and have to have the latest and greatest, go ahead and spend the extra money. The rest of you can pretty much ignore the hullabaloo ... its "Much Ado About Nothing", IMHO.
If you really care, lots more info is available at:
http://www.fcc.gov/dtv/
timber