The main problem I've found with LCDs (and to a slightly lesser extent plasmas) is excessive edge sharpening.

This gives everything the stark look of early video systems, rather than the more believable warmth of image given by film.

But they've definitely got better. However, I went into Comet t'other day to buy a telly, and rather than spend £799 on a reasonably good LCD, I bought an end of line 28" 4:3 Ferguson stereo CRT one for £100. It had a much more true image than the LCDs did - plasmas not being in the equation wot with being so huge, no point with one of those when you can get a projector bigger and better than any plasma for less money..