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Yep, plasma is usually better.All TV's are 60hz, 120hz refers to motion interpolation & 600hz on plasmas refers to the sub-field drive.
Do some googling.
Plasma is better, compare the top rated plasmas from Cnet and HDTV Test UK within your budget.
Is a plasma 720p ok for gaming?
For consoles before the ps4, sure.
For pc and new consoles there really is no shortage of affordable 1080p solutions.