Hands down, you are still going to get the best picture with a Tube TV. I have a 19" LCD TV/Monitor and when I hook up my Wii to that it looks fine, but it does not look nearly as good as when playing on my parents 32" CRT HDTV. The thing with LCDs is that they have Native Resolutions. The native resolution is what is going to look the best on the screen. Now the problem with the Wii is thatthe bestit can do is 854x480 (480p). The LCD is gonna have to do extrapolation.
Extrapolation is using the given data (the resolution getting inputted to the TV) and manipulating it to the native resolution of the LCD. When this is done, the picture could end up becoming a little fuzzy. If you go with a CRT they are capable of displaying multiple resolutions. What this means is that the Wii is going to be able to display 480p at the resolution of 854x480 and you will get the best looking picture. If you are playing an Xbox 360 say, you will be able to display at 1080i (not quite sure if CRTs can do 1080p, but the might be able to) and the image will look awesome. If you were playing the 360 on your LCD, the picture would still look awesome because 1080p would either be the native resolution of the TV or it would be greater than the native resolution. If it is greater, then when the picture is downscaled, it would still look good because it's not trying toadd more pixels.
I am at school right now and my roommate purchased a projector last semester. When I play video games I play on a 108" screen (give or take). Playing Super Mario Galaxy, the picture looks awesome even on a screen that size. The projector has a native resolution of 1024x768, but Galaxy was actually developed by Nintendo (a company that wants to get the most of the Wii, for obvious reasons) and so it will look great. But I've downloaded HD movies and when playing those (720p so 1280x720 resolution compared to the 854x480 of a DVD) the picture looks so much better. That is because the projector is able to output 720p and it has to do less with the image then it does with the DVD image.
So in conclusion, if you are only planning on getting a 36" TV max and you do not mind have a bulky CRT TV, then there is no reason not to go with one. I will just add, if you can, see if you can get a CRT with HDMI if they have it because that will allow you to get the most out of a Blu-rayorHD-DVD player or from the Xbox 360 Elite or PS3. Also, realize that you will probably not notice a difference between 720p and 1080p on a screen of that size. You really start to notice the difference of 720p and 1080p on screen sizes over 60" - 70". Lastly, it really depends on your eye sight and your attention to detail, but you might not even notice the difference between 480p and 720p on a 36" CRT TV. But remember, make sure that you have at least 2 sets of component inputs for the TV (one for your HD cable box and another for a video game system). I would also recommend getting a DVD player that does progressive scan because that will allow you to get the full resolution from a DVD. I'll check back, but if you need any help you can PM me.
EDIT: The poster above me is actually talking about Component cables not composite cables. Component cables are the red, green and blue cables with the white and red for audio. Composite is the yellow cable with the white and red for audio. I also wanted to include some links for you to look at: http://compreviews.about.com/od/multimedia/a/LCDSpecs.htmhttp://compreviews.about.com/od/multimedia/a/CRTSpecs.htm
-Shark2k
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