Yeah I think it's a decent buy to budget.
That's some beefy back on it I'd imagine at 25"! The criticism of the panasonic is it isn't the LXD a sister model which has 100Hz etc. It's not the new range of panasonics either but they are a lot, lot, lot and with the new LGs not everywhere sells them or even has them in stock. Even some nutter trying to sell you a price cut plasma like some of the silly deals I've seen would be a lot more. You know the S bravias (second type up) and the 3020 are vaguely around that price elsewhere, depends whether you think they are any good, I'd get an X or W but they are a lot more too. The S series and V series shift a lot in the shops of 32,37,42. These tvs aren't 1080p either but that wouldn't matter too much on a 26" and you're not going to get a 1080p for £300-400 or anywhere near apart from these freak hybrid resolutions. You're wife's presumably got the idea that £300-400 budget and that sort of size so with that sort criteria I'd go for something like that if I was buying now.
I'd be happy with most of the panasonic range that people were so positive about last year. The new ones have only just come out and are usually £1000-1500 in the larger sizes, regardless of brand. You're already a generation up on the LCDs people I know have bought.