I know from experience that the smaller Sharp "Aquos" TVs handle interlaced screens, in fact, they are rendered perfect with no flicker.
Couple of issues though:
While NTSC screens were fine, PAL screens would do weird things... even though the monitor is supposed to handle PAL (various flavors of PAL, NTSC, and SECAM are selectable). However, perhaps the units sold in PAL regions will perform differently.
AGA palette was reduced (16-bit). There are a ton of variations/different models, so all may not be the same.
**edit**
Also, I've tried the Samsung 171MP, which is an older (but still pretty nice) PVA panel (also handles AGA perfectly). Interlaced screens look decent, but they do flicker a bit. (Not like an old 1084, but noticeable.) Fantastic for most games though, even if 17" makes them look a tad blocky.
Only problem with my NTSC model was that it (aargh) didn't handle PAL. Not a problem for you, though. They've been out of production for a while, but they pop up on ebay. 170MP and 172MP *probably* work, but stay away from the 15" models as I'm pretty sure they were all TN.