HDTV as a monitor?

I've read quite a bit on this, but I'm still undecided. I'm looking to have 2-3 monitors. The only reason I want to have HDTV inputs on one of the monitors is because I want to connect a Nintendo Wii to it (I live in a small apartment).

I'm considering one of a few setups:

1. One 32" 1080p HDTV with two regular 1080p monitors on each side.
2. 1 26" 1200p monitor with component video inputs (SamsungT260HD or ASUS VW266H, with 2 regular 1200p monitors on each side.
3. 3 regular monitors for my PC, and buying an HDTV separately just for the Wii. (I'd rather not do this since it's so expensive, plus I'm not sure I have room.)

I like the 120Hz TVs, but I understand that the maximum input (from either PC or console) is 60Hz, so I might as well just get 60Hz, right?

I've read that there tends to be input lag on both HDTVs and monitors with TV tuners. Just because a monitor has HDTV inputs available, does that mean there will be lag? Will the lag be that noticeable? This will be my main display, so I'm concerned.

Will the HDTV look good with PC input? Will the monitors I mentioned (with HDTV inputs) look better? Will a regular monitor look better still? One of the two monitors I mentioned has a TV tuner, which I probably won't use. Will that make a difference?

I know people with HTPCs use them for gaming sometimes, so the lag can't be that bad, right? I'll be using this computer all the time, for everything, so lag might bother me more. I need to know how bad it is.

If it helps, my system:
CPU: Intel E8400
MoBo: Gigabyte P45
GPU: NVidia 8800GT (I'll be buying an additional video card soon)
RAM: 8GB DDR2 800
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