A_Future_Pilot: So...long story short my $800 build will be able to play Crysis 3 on max settings with my monitor. If y'all want to spend $1,500 a year to game at higher resolutions go right ahead...I just have no idea WHY you would want to!! lol
This issue with your argument is apparent if you continue applying it.
I have a display that has over 200 pixels per inch. It is over twice as sharp as either of the displays you listed.. but it would suck for (ahem "proper") gaming because it is only 4.3".
I
can play UT2004 single-player at 9-12 frames per second (which is what my Atom-powered server can achieve). Sure, it'd be nice to have a faster frame-rate, but it clearly isn't necessary.
Your display is 1 pixel per inch sharper than the 23" screen. Not only is that pretty much impossible to discern to any significant degree, especially during movement, it also has 762,880 less pixels to convey visual information to you with. That's over 35%!
For the same reason you choose low resolution, high quality, low cost, I would choose low cost, low quality, low resolution and high framerate (I played Assassin's Creed 2 at 800x600, minimum quality and still got sub-20fps on my previous machine) and another would choose high quality, high resolution, high framerate, high cost.
Personal preference.