Best here is subjective, but really I'd say the best setup is the one youre most comfortable with.
As for display, it seems people tend to assume that what is true for them is true for everyone. Personally I loathe 1084s monitors, and instead plugged my a1200 into my 24inch 1920x1200 lcd monitor. Looks much nicer than the 1084, not blurry, and is usable at above ntsc/pal resolutions.
At 4:3 display this gives me a nice 400x300 display, which is enough for games with overscan. Id avoid something like 1280x1024 displays, as while it fit exactly into 320x256, it means a lot of software wont have the full display. Displays vary, as does peoples perception of things, so its pointless, and silly to say, "X is the best option".
An accelerator plus a1200 is a nice option though. Contrary to what a lot of people say ('030 users probably) an '030 is a bit weak.... sure it lets you play games intended for floppy well enough via whdload, but its not enough to have your bases covered elsewhere. To be brutally honest most games that were made for a500/floppy are pretty bad. Through sheer weight of numbers though there's a lot of good ones, but on average amiga games have dated terribly. Perhaps they just weren't that good to begin with.
Wasn't until mid to late 90's that amiga games peaked. Stuff before that (with some exceptions) was more miss than hit.