Not really that fair - the TN panel looks like crap in that picture while many TN panels look much better than that.
IPS does have better color representation than TN and often better true contrast, but the TN just looks abnormally bad in that picture; it looks dithered to high hell for starters.
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IPS is, of course, substantially better than TN panels. I find that whites look much better on IPS screens, and, they are much MUCH better at non-standard viewing angles compared to TN.
Even in motion, while TN panels have great response times, I find that IPS panels with <20ms lag times look better due to the far superior color representation.
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Even straight on, a good IPS screen murders a TN panel for image quality.
Case in point, I've hooked up my PS3 to both my Dell 2709W (an MVA panel btw - not quite as good as an IPS panel, but still lightyears ahead of TN), and a TN Samsung T220HD (that was praised highly for its image quality at the time). Needless to say, the PS3 looks substantially better on the Dell, and not just because of the size difference. Colour accuracy is just miles better on the 2709W.