LCDs are great for 1024x768 and above, but indeed, for lowres AGA stuff it will just look pixely, IMO.
If I had the space on my desk, I'd use an actual C= monitor for native modes as the image quality is the best, but I don't so... :-)
Also, there is a very important thing about Amiga ScanDoublers and Monitors that needs to be clarified. In order for a VGA monitor to work with a ScanDoubler it needs to support the lowest refresh rate at 30Hz. 31Hz often does not work, and a lot of LCDs out there can only go as low as 31Hz...even a lot of CRT monitors, too.
Pay close attention when you pick a monitor! 30Hz is the only way to be sure! I guess there may be LCD/CRT monitors that have a 31Hz lowest resresh rate spec that still may work, but... take it at your own risk.