OK, here's an honest review:
Yes, using this monitor at anything other than 1600 x 1200 will certainly cause a drop in quality. Whether it "sucks" is a matter of opinion.
For games, you definitely want to play at 1600 x 1200. Some caveats: Older games don't support that mode, and even if the game DOES support it, you still need a powerful computer to play at such a high resolution. That said, playing a game at 1600 x 1200 is truly the only way to fly.
It took me a little while to get used to having my desktop in 1600 x 1200. Text is much smaller than you're used to. However, I don't find myself squinting, and now I can't live without it because of the increased desktop real estate. (You'll be surprised how many more things you can have going at once.)
So, the bottom line: I think this is a fantastic deal, and there's no way we are going to see 20" monitors at this quality at this price for a long time to come. It's a great investment. HOWEVER: If you don't have a strong video card/computer set up, and can't play games at 1600 x 1200, you may not want to go this route. LCDs only deliver peak digital resolution in their native modes. A smaller 17" or 19" screen would be better in that case, I'd say.
(But again.... you'll get a better computer SOME DAY, right? This is one hell of a good investment.)
By the way: I hope all those ebay jerks get their asses handed to them.