Ajay, I don't think it is only about higher refresh rate, and it is not only Philips who provide smooth motion features. Most of the leading brands seem to have some form of interpolation between real frames in the source material. Each one has named it differently, Philips calls it pixel plus, some other brand (LG or Samsung) calls it TrueMotion, while Panasonic calls it Intelligent Frame Creation. This feature is manually switchable, I have tried it on fast rolling text which showed quite a bit of judder, but upon switching it on it became much smoother as well as cleaner. Modern world guy probably showed me Panasonic plasma with frame creation switched off along with Philips. Though the motion was smoother on Philips, it left a shady shadow behind! I don't know whether it is due to PixelPlus processing or response time issues associated with LCDs or combination of both. The shadow was as thick as the text itself, if not thicker. With frame creation switched on in Panasonic, I think it is overall better than Philips LCD.
V1kram, sorry if you have already made your purchase. Even I had short listed S10 and G10, so my thoughts may be helpful to you. What I see is that both models are close to each other on most important specs, as compared to older PV8/PV80 models. Following are important differentiating factors.
1. Resolution:
G10 & S10 are true full-HD with moving picture resolution of 1080 lines.
PV80- HD ready, no idea about moving picture (fullHD PV800 had 900 moving picture resolution, so PV80 may be something about 700)
2. Panels:
G10- G12 neoPDP
S10- G12
PV80- G11
3. Intelligent frame creation:
G10- yes (600Hz sub drive)
S10- yes (550Hz sub drive, 600 is better number since it is divisible by most common frame rates 24, 30, 50, 60 fps)
PV80- not sure, but it had some 100Hz option.
4. Vreal processing (I don't really know whether it has anything to do with frame creation as such, or it is some different kind of processing)
G10- Vreal 4 pro
S10- Vreal 4 pro (all 2009 fullHD models have 4 pro, HD ready models have Vreal 4)
PV80- Vreal 3
5. Equivalent steps of gradation (I guess this gives relative comparison of color accuracy of pannels)
G10- about 6K
S10- about 5K
PV80- about 4K
6. Contrast:
G10- 40,000:1 (dynamic 2000,000:1, touted as "infinite" black)
S10- 30,000:1 (dynamic 2000,000:1)
PV80- 15,000:1 (dynamic 1000,000:1)
7. Cost: I got following last quotes, apparently as Diwali offer with 3 years warranty-
G10- 72.5K
S10- 57K
C10- 45K (which should be better than PV80), also 47K with a free microwave oven.
However, that offer was valid till 25th October, just a day before your post.
I chose S10 because it appeared to be equivalent to G10 in most aspects (on paper) and extra 15.5K premium plus waiting period of 1-2 months was not justified.
OK, here is my experience on the purchase. They delivered the set on promised date (coincidentally I had a week long vacation, so was at home). But they told that installation is a separate affair which will be done later. It was done on the next day. The mounting that they provide is of good quality but it only supports little bit of tilting in upward/downward direction. Though it helps in reducing glare, accessing back panel and adjusting vertical viewing angle, I wanted to have flexibility to move it towards lef/right as well (though primary viewing location is straight in front). They were helpful in following up with their subcontractor regarding availability of such mounts and came back saying it will cost 4+K. I though I would pay difference amount of may be 1-2K but that was not an option, so stuck to default mount. Installation was quick and very much professional. They used proper drilling machine and heavy bolts, no hammering nails! I am sure it will bear the weight of plasma without any problems.
So far I tested only normal cable TV and VGA computer connectivity. Noise reduction works great for pathetic cable quality (soon to be replaced). Black levels and overall picture quality is amazing. VGA connector can not utilize full resolution of the panel, max is some 13xx by 768. Engineer who installed it told me that you don't really have to worry about image retention/burn in at all for these new models. It was a concern for much older models. Still, as a precaution I am using "normal" picture mode with contrast at 25 (range 0-100) and brightness at -10 (range -50 to +50). I was told that my new laptop had HDMI output, so I had plan to play some high definition video using it, thereby overcoming limitations of VGA mode. Got a HDMI cable for Rs 400/- from SP road (rather than spending 2K in e-zone!). But to my disappointment, I realized that the laptop has DP++ (DisplayPort) connectivity, not HDMI.

Now I have to look for DP to HDMI adapter, which I am sure won't be readily available as of now, and even if it is, it must be having an insane tag! To add to that, my old DVD player's lenses seems to have given up recently. It is a progressive capable player with component and s-video, digital audio outputs. If I can get it repaired under 500 bucks then I will continue to use it, otherwise buy a good one (may be philips).
One more point about whether full HD makes sense at 42" or not. I believe it makes sense for virtually any size, contrary to some people's belief. For any given screen size there is minimum/optimum/maximum distance based on it's resolution. For standard definition the range of distance would be higher as compared to higher resolution. Based on some well known standards (THX and SMPTE), this range for a 42" display with 1080p resolution is between 2.2feet to 6.6 feet, optimal being about 5-5.5 feet. If you change the size to 50", then it becomes 2.6 feet to 7.9feet, optimal being 6-6.5 feet. Is it really too much of a difference? You can increase the size to such a level that usual 10-12feet becomes ideal for fullHD, but then it will be too close for SD! All said, very small screens don't give the feeling of impressiveness of a "big" screen. I think it is because you can not move yourself relative to a small screen much, a little movement of your head (eyes) can make drastic changes in the view you get. It is not so for big screens. 42" is just about the minimum size when screen begins to feel big enough. Even before purchase, I felt like 50" would have looked ideal for my drawing room which is 20x20 feet (though primary viewing location is about 12-14 feet from the screen). However, I did not find it worth as the price shoots up exponentially.