Here's my friends reply when I asked him through his email...
"Well your monitor can display those resolutions, but not terribly well because it's not really big enough...you'd need a monitor the size of a large-screen television for it to be worth it, otherwise all that detail is squished. People want high resolution so that when they blow it up, it looks great, and if they shrink it to regular...hey that looks good too. Of course when you take a picture that's 10 feet by 10 feet and shrink it to a thumbnail that's 10in by 10in, you're going to obscure details, making it pretty nearly absurd. The dvd's you're playing now are technically good enough for even a bigger tv, the jaggies are a natural result of digital encoding and decoding...."
I just want some clarification if he's right or wrong or half-way. Basically because I prefer a small display over a large screen. If I'm squishing detail then I'll wait for displays to be a reasonable price and get a larger one. Otherwise, if BFG is right in saying as long as the monitor can display the resolution of the source material then no detail will be lost.
I use 85hz for a refresh rate as I have heard that too high and the picture gets a little blurry. Anyone that can clear this up will make my day and rewarded with their weight in cookies...