I was thinking of the 1701.
Composite video on a 1701 would be /better/ than a TV (especially through the antenna connector), but a 1084 (or similar) will be /much better/ for reading text.
The monitor output uses 3 seperate signals for the video, direct from the graphics system - composite has just the one, and the signal for that has to pass through a modulator (which in itself degrades the quality a bit).
Also the screen part of monitors has got gradually better over time - referred to as the 'dot pitch' - which is basically how crisp the screen can be, given an ideal input.
$40 for a complete working C64 setup is a reasonable price, and a very good price if it includes a disk drive ;-)