2 Words: Horrendous Scaling!
LCD monitors are great for a FIXED resolution and refresh rate. As soon as you start playing around with displaying different display sizes, it forces the monitor to scale your picture to fit the FIXED dot layout it has.
Cheap old LCD's wouldn't even do that... they left you with a huge black border.
New ones will scale, but will cause 2 artifacts:
1) Blocky, uneveness
2) Fuzziness.
It all depends on the mfg, how much electronics is in the monitor, etc..
The problem is, for example, most "classic" games are in the range of 320 x 240 pixels. If that were the case, then it would scale to 640x480 nicely (4 pixels for every 1), or even 960x720 (9 pixels for every 1). [Worse though not all use that.. it might be 328 x 244 pixels, making multipliers not work as well]
Problem is, it gets hard (or impossible) to tell the monitor when you want it to scale (fill in with average dots) and when you want it to leave a border.
Therefore the resulting picture will have some pixels doubled, some tripled, causing things to be out of proportion to each other. Or it will fill in these areas with dithering (pixels of an average color between 2 adjacent pixels).
Think of taking a game screen and running it thru a JPEG compression at say 90% compression.. Thats what it will look like on some LCD's. Or it will fill a tiny portion of the screen.
CRT (tube) technology has the ability to vary the spacing between each pixel that an LCD doesn't. An LCD has it's dots at precisce positions and cannot move at all. You must use or not use every dot on the display, and not be able to have them fill in like a CRT does so nicely since it uses Analog technology.
In addition, for the most part, trying to run with fake scan lines turned on looks horrible on LCD.
Until LCD's can pack 4 times as many dot points into the same space they do now, LCD is not a viable option for a "quality" display in a cabinet. Yeah, it's fine for playing Mame on your notebook on the sofa with the keyboard, but not to have the real experience.