I'll give an interesting counter-example. I recently purchased a Pioneer 50-inch HD plasma television (PDP-506XDE). The NATIVE resolution is 1280 x 768. This means the panel has exactly 1280x768 pixel elements, just like many LCD computer monitors. The media (connector) box has two HDMI inputs and a D-Sub (analog RGB) PC input.
So for the best quality, connect the PC via a DVI cable to the HDMI input, right? HDMI video is apparently signal compatible with DVI, it just adds a sound channel and the plug is different. So I hook up via a DVI/HDMI cable to find that my ATI X850 PE can't send a perfectly matching signal to the monitor. Either it's the wrong refresh rate (frequency), or the wrong resolution, as 1280x768 at any refresh rate spills over the edge of the screen and is flickering like mad, apparently interpreted as an interlace input, which of course it is not. The closest match is at 1280 x 720 at 60hz, but even that is extending over the edges of the monitor, and the fonts are not sharp--the way things look if you're not running at native resolution. Clearly the media connector box for the panel is unable to correctly interpret the DVI signal at native resolution. There's a cryptic note in the HDMI section of the instructions saying only "Note: PC signals are out of correspondence", and this must be what they mean. The media box is probably trying to interpret the HDMI input as some kind of "consumer video" signal, and subsequently using it's inbuilt scaling ability (incorrectly), though why it would do this is beyond me.
So in desperation I hook up the analog RGB (D-Sub) connector, expecting the worst. Lo and behold, a perfect 1280x768 native resolution image. Looking closely I can see that each pixel is clearly defined; there's no apparent bleeding of colors or pixel information. And as far as I can see the color is perfect, no different than my LCD monitor attached via DVI to the same PC.
So is analog RGB really significantly inferior to digital DVI anymore? According to CNET the difference is now vanishingly subtle, see the following article:
LCD Connections: Analog vs. Digital - CNET
I'd be curious if anyone has a technical perspective on this.