I don't like that large of a resolution on a 23" monitor. I'd rather stick with the traditional 1920 x 1080 for a 16:9 monitor. It would stretch DVDs and Blu-Rays to a higher resolution and would decrease the picture quality a little bit. The hit to DVDs will be greater than Blu-Rays because it will be stretch more to fill the screen.
You will also get lower performance when playing games simply because the resolution is higher.
If I were to buy an inexpensive monitor right now, it would probably be the ASUS VH242HL-P for $220. I like it because of the height adjustment and my experience with my Asus VK246H monitor. I bought the VK246H mainly to keep an eye on some processes on my HTPC, but it turns out to be pretty good for games. For the average person it also makes a good monitor for watching movies. See link to my review at the very bottom of this post.
This is my Asus VK246H ($230):http://www.newegg.com/Product/Product.aspx?Item=N82E16824236048
This is the Asus VW246H ($220) which is the same as the VK model, but no webcam:http://www.newegg.com/Product/Product.aspx?Item=N82E16824236049
Looking at the specs of the ASUS VH242HL-P, it appears to be using the same TN panel as in the other Asus monitors I listed.
Review of my Asus VK246H monitor:http://www.tomshardware.com/forum/54250-3-asus-vk246h-review-final-update