Hey Hardware Harry.
I tried finding a review for the LC40LE705E but could not find one. It must because the T.V. is still relatively new.
I did find a review on the LC40LE700E.
Basically the only complains about this T.V. were as follows.
Lingering motion blur is a weakness, so if your an avid sports fan or like to watch a lot fast moving material then you might to look at something else.
(Fast action scenes could appear better, but easy on the eye for most content)
Sound from the small speakers is a little weak, and may sound tinny.
Everything else about the T.V. was well liked.
The lingering motion blur may have been corrected with the newer model, so this something to keep in mind. The weak sound from the T.V. was resolved by using either a audio video receiver or a sound bar.
There shouldn't be any issues with buying a cheap DvD player that upscales the DvD's. If your not ready for Blu-ray, don't jump into it until your ready.
Everyone has a budget and can't be expected to buy the best of everything. Set a goal and work with it. I would definitely try and have a look at the T.V. in action. It's what looks good to you and if it makes you happy then go for it.