I think the hidden story here is that nobody can really complain about the assumption that everybody is using LCD monitors now - because everybody is (except a few of us).
The big story is that you have to pay attention to DPI, or Dots Per Inch. You set it too low (or use antiquated software), which using insanely tiny fonts exclusively will also accomplish, and you're putting your eyes through a lot more work.
ClearType does look terrible in D's blown-up examples, but the DPI there is so laughably low (lower than the standard for recent applications) that the fonts will look terrible no matter what. Any decent modern LCD screen (even a screen I use occasionally made in 2003) should have text set large enough so that the subpixel rendering is not splitting letters like that. Even tiny text at the top of the Shmups layout (i.e. the FAQ, Search, Members, Control Panel and other links) is 50% bigger, at roughly 6 pixels wide.
Also, taking a screenshot and blowing it up doesn't make sense because you're converting subpixels to full pixels, so
of course it's going to look much worse because the process isn't being allowed to work.
I run 1600x1200 and subpixel rendering / ClearType seems to subjectively double or even triple the DPI resolution of text, and helps define the edges of characters much better. On my 17" even putting my nose inches from the monitor doesn't show the patterns seen here because the blue / pink subpixels are treated correctly; taking a screenshot and blowing it up doesn't make sense because you're converting subpixels.
Solutions:
- Don't be stingy with resolutions within programs when you can set them.
- Get a modern OS and applications that don't have terrible fixed-DPI elements (XP is still workable but it's a lot more eyestrain-inducing than Vista or Win7 which have smarter fonts, XP and earlier scale screen elements wrong within Windows, just try increasing the size of fonts for Windows and enjoy everything looking eerie and wrong)
I don't think the monitor is really the issue here, because a newer monitor with a higher DPI would just make the text smaller. It would make the ClearType effect less evident but with these terrible DPI settings you're not getting any more readable text.