There sure is a lot of difference in opinions in reference to VGA and HDMI and monitors vs TVs. Let me put in my two cents worth and hopefully it will give some of you that are still conflicted on this subject, some answers.
I am fairly new to gaming but have been in the networking and computer industry since 1981 when the first pc came into the household, I think it was 1981 or there abouts. Have a CCNA certification which I keep up so am not a novice in the networking and computer world.. Hey I am 68 but still like to play with electronics, so if you hard core gamers don't mind listening to me here is what I have experienced.
I have a 360 slim and love to see if I can get a piece of equipment to work at it's maximum performance. I am mostly into video, not so much audio, but of course we need decent audio also in gaming. Here's what I have found.
I started with a 22 inch Samsung Monitor, Samsung 2220WM, which has a native resolution of 1680X1050. I tried component cables and switched to a VGA cable because the picture was much clearer and the colors more vivid. I wanted to try HDMI because the hype in the industry is that HDMI is the way to go. The Samsung had only DVI and VGA so I purchased a HDVI to DVI cable and tried that. The monitor would go black periodically and I would have to do a factory reset and start over. The picture was not as clear as the VGA, colors washed out, so went back to the VGA which in my opinion was 100 percent improvement over the HDMI to DVI setup. Had to use a Microsoft dongle for the sound in the HDMI to DVI setup also, which I didn't like, but the sound was as good as with the VGA cable. As an afterthought I should say using the VGA i had to set the resolution to 1280 X 1024 for the best picture, any higher I would get the famous black bars top and bottom.
Still not satisifed that VGA was better then HDMI I recently purchased a full HD Dell ST2421L monitoir with DVI, VGA and HDMI. Bought a real HDMI to HDMI cable High Performance with Ethernet (1.4). First connected my VGA cable and it went right into the native resolution of 1920X1080 full HD and the picture was beautiful, vivid colors and sharp picture. Switched it to the HDMI cable with Microsoft dongle for sound and booted up and it went to 480i to start with but after setting it to 1080p the picture was as clear as the VGA, but the colors were a little washed out, not near as vivid. Had the monitoir set to game mode for both HDMI and VGA.
I have friends who use TVs and Monitors and it seems that the Monitors always have a little better video. Hope this helps those that still have questions about VGA and HDMI.
One last thought, if any of you have BulletStorm let me comment on the problems a lot of you were having with monitors that were not 1920X1080, a lot of the monitors under 23 inches are only 1680x1050 and BulletStorm would not fill up the screen giving you the letterbox effect, black bars top and bottom, I had this with my Samsung. After hooking up my Dell monitor I put BulletStorm in and found it had a patch to apply which I applied. The screen filled up with the game with an awesome picture. Don't know if this was because I was now running with 1080p on the HDMI hookup and 1920X1080 on the VGA hookup but probably so. I now wonder if the patch I applied fixed the problem with the lesser resolutions on the 22 inch monitor.
In closing I want to say, I think the HDMI hype may be a fiction of the industries imagination and a way to get us to purchase something else. But then I guess there are a lot of HDMI devices out there that will make it worthwhile to go HDMI for some of us one day.
Need I say that I am back to running with the VGA Cable. If any of you, that are tinkerers like me, have had a different experience or different results than I have had I would like to hear what results you ended up with. Thanks for listening, and I hope this helps same some of you from spending hard earned cash to find the optimum setup for your systems.