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I really question how much of that conversion really hurts the picture quality enough for most of us to take notice of it?
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It all depends on the quality of the scaler in the display and the display itself. 99% of people won't know the difference because their displays will convert it to 1080P/60 anyway. Only some of the newer displays will accept 1080P/24.
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My guess is probably doesn't hurt the image at all. You know how most of us self proclaimed  HT guys get all caught up in the specs/bits/whatever else....and sometimes that already discriminates our view of what we're supposed to see.
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Too true. If you can get lost in the "Home Theater Experience" while you are watching a movie then your gear is good enough for you.