120hz LED-LCD (especially locally dimmed) are the best reasonably priced monitors you can get now. You have chosen a plasma screen due to your personal preference for a LACK of clarity. You are complaining about aliasing or other "jaggy" elements of video games...well those are actually part of the game, if you choose a TV that "softens" that effect, you are essentially losing visual information.
You are correct, I prefer a smoother picture doing fast action scenes or moments in video games and blu-rays over jerky and pixelated, pretty sure I have some backing in that department. Also, don't know too many programmers but I have to assume they want the best experience possible for gamers at heart.
I also think that LED-LCDs are currently on par with the black levels of plasmas, maybe better in some respects of contrast and color.
Blacks imo were definetely better on the LED ( I mentioned that in the OP). Contrast is debatable.
At this point, anyone looking to buy a TV should probably get something on the cheap, a last gen 60hz LCD television without LED backlight should hold you over until 3D tvs begin to hit the market, which is what you will really want.
3D Technology is brand spankin' new. There is ZERO content for it and will likely be a couple of years before there is a decent amount. By that time new technology will be here as well. I'd say wait on 3D tvs, but in the end it's your money, and your decision.
And of course, these are all OPINIONS and I am by no means a qualified reviewer, I was just giving my story in the hopes it helps someone looking for a new television