I haven't seen a dead pixel in I don't know how long to be honest. I think if you stick with a decent brand the chance of getting one is minimal. Most of what I purchase are through national distributors, and have never had a problem returning because of a dead pixel when I did get one. Not sure how normal retailers (local and on-line) are about it. I'm sure it would suck, however, to get one - especially if my place of purchase was giving me a hard time about returning.
I could see the native resolution and slow response being an issue for gamers, but not much of an issue for a non-gaming or minimal gaming user. Just be aware of the native resolution and make sure it gives you a desktop size you like when purchasing. And response times are getting pretty good on LCDs if you look around for one with that in mind.
I have to disagree completely about poor color reproduction. Again, cheap LCDs will give you poor quality, just like a CRT, but decent LCDs give excellent color accuracy.
There's no denying the price issue - these things are friggin expensive. But, they're dropping.