Monitor for console gaming [HDMI required]


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I am currently using HP W1707 17" 1440X900 monitor which supports HDCP has features DVI-D but i can't get it working with xbox 360/PS3. I am thinking about upgrading to a Full HD monitor with HDMI port. I'm totally n00b about Aspect ratio and resolution compatibility with consoles. My Primary usage will be gaming so it should be compatible with xbox 360/PS3 HDMI output.
i don't care about TN and IPS panel or response time [my current monitor has 7ms, never noticed anything weird]

I'll buy this monitor next month. [will postpone to jan 2014 in case i can't manage to return home this diwali]
max budget 18k

my current setup:

1. PS3 160GB slim [HDMI]
2. Xbox 360S 250GB [HDMI]
3. AMD phenom II X4, HD6770 PC [VGA, DVI or HDMI]
in PC, I play at 720p so performance doesn't matters.

I'm considering 3 options:

1. Get a 22" FHD monitor with HDMI port @9k. save the rest of 9k to buy next gen consoles or GPU in future.

2. Get a 22-23" FHD 3D monitor. if i can get one within my budget. I mostly play flight simulators and always miss 3D in virtual cockpit.

3. Get bigger 26-27" FHD LCD. bigger screen = better gaming experience ? Does it worth spending twice just for 5 inches more?

I don't have any idea if bigger size in a monitor really worth spending, as i am using 17" monitors since last 10 years.
please suggest.
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