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LCDs typically look really good at their native resolution, but they don't look half as good as an HD CRT of the same size in any other resolution. It's just easier to notice with videogames than with normal TV.

And that's why, people buy and HDTV and end up saying that HD programming makes normal TV looks like crap in comparison are so unreliable: It's just that their highly touted LCDs can't do their job right.