I came to the conclusion that there are drawbacks and advantages to each choice, and just went with the one I felt suited me best. For old arcade games, my ideal choice would be an arcade monitor, followed by a TV, but I don't want to get into de-casing or mounting or building a shelf. I just don't have the knowledge yet. Beyond that, with the advantages of an LCD (hi-def, newer games in full 24" wide-screen, hi-res front ends and programs, easy to install, fool-proof, etc), I can live with just throwing up a MAME RGB effect for the old classics. Its just something I had to settle on.
If I had decided on a TV, right now I'd be scratching my head wondering how I'm gonna get that thing into that little Kangaroo machine, with the same indecision and confusion that has stalled me for 2 years. Maybe after this project is finally done, somewhere down the line, I'll consider something different with the knowledge I will have surely gained . . but to be honest, once I jump from classic Street Fighter II in 21" 4:3 to high resolution Super Street Fighter 4 in full 24" wide-screen with a few button presses, I think I'll be ok with the choice.