Problem with 4:3 monitors are that I couldn't find one larger than 20" or so. I would have loved to have like a 24" 4:3 monitor, but couldn't find anything.
My thoughts on widescreen LCDs: I wanted to have a screen large enough that my vertical games would still be a good size, so I went with a big 28" HannsG monitor. It has a lot of real estate even on cropped vertical games, and is especially large for horizontal games. You can set your preferences to crop games or not in horizontal mode. Personally, (I am not a total purist) I have been running all my Horizontal games at fullscreen so they are stretched a bit. I play mainly on my own cab, so I don't even notice it anymore, and it certainly does not affect gameplay. I like how they fill that huge amount of real estate with no black bars.
After upgrading my computer, I also now play all my PC (mostly FPS) games on the cab, and they do take advantage of the widescreen. So now I am especially glad to have gone with the big monitor in there.