It's probably that certain specific model of HDTV you tried that had the problem. The first LCD TV I bought (back in 2006) was the special "Symphonic" one that was the black friday one from Wal-Mart.
I got it home, and while movies were "ok" on it, Super Mario World lagged to the point that it literally was close to a second from the time I hit the button to the time Yoshi stuck out his tongue. The very next day the tv went back to Wal-Mart and I explained that while the physical tv itself was fine, games were half the reason I got it, and they did not work.
The problem is what's referred to as "response time" - Plasma screens - at least when they were new - were always better with their response time than LCD's. As time has gone on, there are now 60Hz and 120Hz LCD tv's that tend not to have that problem. Too-high of a response time causes the video to lag or "ghost" where things are so slow they blur.
Edit: I should be clear that 60 and 120 Hz is not what I was referring to as response time, that is called "refresh rate" - response time is the number with ms (milliseconds) after it in the specs of the tv. Try to find one that is either 5ms or better yet, 2ms as that will provide the quickest time and the clearest picture when things are in motion.
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