I think once you get down to that size it shouldn't be that big of a deal. A 37" TV used as a monitor does in fact look blurry, but it's also 2-3 times bigger than a 21".
In the garage I have a 15" LCD TV which doubles as the computer monitor out there too. It just an Insignia (Best Buy el-cheapo) but it works fine as a montior; partly due to the size.
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