We have always wondered if there was a reason people didn't use LCD TV's or Plasma displays as their regular PC monitor. Newer HD capable panels support resolutions of up to 1920 x 1080, and with prices steadily being driven downwards, this has become more of a feasible solution.
So, what is the downside?
We've played around with quite a few TVs here at Good Gear Guide, and most of them have displayed PC input quite impressively; beautiful crisp images, wider than usual gaming and huge screen size! At extreme sizes the desktop may be a little blocky when running at a low resolution, but that is a small price to pay for life sized enemies in quake.
Already over the last few years we have seen the appearance of combination screens, designed to be both PC monitors and televisions, so it appears the convergence of the two mediums is definitely on vendor's minds.
A word of warning however, if your graphics card is not capable of displaying widescreen (16:9) images, text output will suffer aliasing effects and pixelation due to the scaled image. This aside, we don't see why computer users don't do this more.