The fonts look bad, but the resolution isn't near what it was. The games play great on it. Svideo or no, it won't look much better. It's the way it works.
Try using the large fonts, as large as you can, maybe try the accessability features too.
As far as heat goes, you can leave the back of your cab open on top, so it's like an entertainment center. If you go to garage sales, you can find old pcs and such that have fans in them, or buy one at radio shack.
As far as the weight goes, just mount it on a self that's glued and screwed to the side walls of the cab. Use 2x4's and a 3/4" plywood (NOT MDF) self.
I have tied a PC monitor down using ratchet straps in one of my mame cabs. Another one I built a frame of 2X4's and it's kinda loose.