If you are using an XBox 360, going to a monitor with a higher resolution can actually make the picture look worse.
XBox games are made at natively lower resolutions and then upscaled to 1080p and the 360 sends a 1080p signal to the TV. Game developers make sure text, and graphics look as sharp as possible and will be clear to read.
If you send a 1080p already upscaled image to a monitor with a higher resolution, and the monitor decides to upscale the picture even further, you could end up with blurry looking text (even though it is being displayed at a higher resolution).
The only advantage i can see with using a monitor is if you purchase one with a high mhz rate. Most monitors still use 60mhz or 75 mhz at 1080p but a good one will go over 100mhz.
In all honesty, probably best to stick with the TV, unless you have cash to burn on a true 120mhz @ 1080p monitor.
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