LCDTV's are effectively the same as an Indivision / Toastscan Scandoubler. It is an EXTERNAL scandoubler.
They usually have OSD controls to change sharpness and other parameters of the scandoubler (like the screw on the back of the Indivision).
If you have blurry writing on your LCDTV in workbench you should try to adjust the scandoubler through the TV menus.
Also using a Workbench "PAL60" screen mode will help.
Choosing a resolution as close to the panel resolution will also help. The internal scaler in your panel will produce less scaling artifacts with a whole multiple of panel res.
So if it is 1024x768 try for a resolution of as close to (half) as possible.
Remember you also have a flicker fixer so using interlaced workbench modes are fine.