While I do think both versions are fine for now (since most people still have 4x3 sets), I would agree that the difference is not always noticeable. My neighbor's Sony 4x3 has anamorphic squeeze, so I was able to easily compare the anamorphic and non- transfers on the same size screen. Fine details were fantastic in the anamorphic version, but the overall picture looked almost identical.
Mind you, however, that this was Gladiator, and a true anamorphic transfer. When it comes to making anamorphic DVDs from the LD transfers, we simply don't have the means (see Laserman's post) to really add the extra information to the extent that I would like to make up for the inevitable loss in resolution when downconverted to 4x3. I would much rather watch a 4x3 transfer on my 4x3 tv, because in my mind, it's the best picture I can get at that point in time. (I also don't like unnecessary filtering/downconverting, etc.)
In other words, my preference for 4x3/16x9 really depends on the source material.
That being said, I ran across a really cool PAL->NTSC conversion procedure that I'm dying to try out.
