For TV's, I'd generally agree with Snee. It all boils down to pixel density. TVs under about 40" don't usually have the required aspect ratio to display 1080.
I suppose I also shouldn't be asking which option is best, rather which will give the best quality without having more pixel quality than the device can make use of. Obviously 1080 content is unnecessary. I suppose the 720p x264 stuffs is best option.