I think that saying they are bad for movies is an overstatement. LCDs continue to be a world of compromises. One of the side-effects of the overdrive technology is that you can get some video noise. In going from one shade to another similar shade, the overdrive technology overshoots its final goal before settling in on it. Apparently, this can cause some so-called sparkles. Whether this is be a big enough defect to be a problem will no doubt vary among the different LCD models using this technology and of course the movie you're watching. (Video formats with dithering and lots of compression apparently accentuate this.)
In any case, I don't think it is a fatal flaw that rules out these monitors for use with DVDs, for example. It just seems like more of the same, insofar as no LCD is equally good for all computer uses. They all have their strengths and weaknesses that need to be taken into account and compared to how you use your computer the most. These VA panels with overdrive sound like a reasonable attempt at building an all-around LCD monitor, perhaps rivaling the IPS panels in this regard.
Tom's review discusses the drawbacks to overdrive, and people who have purchased this monitor talk about their experiences in the other thread that I linked to above. That other thread also points you to a
Hard Forum thread where there is more discussion by some folks who have bought this monitor.
Space