Haven't they made devices like this before? They always have much worse picture quality than real TVs.
Speaking of 3D, I finally got to try 3d gaming on a 50" TV with Motorstorm, Killzone 3 and Mortal Kombat.
+: surprisngly playable framerates, more immersion in first person view, some nice 3d effects like water splashing onto the screen in Motorstorm
-: much blurrier than 2D (not a TV problem because 3D movies look way better), first person games were almost unplayable because it's hard to keep changing focus
Overall, it was interesting for 30 minutes but

if I had to keep playing in 3D. I've got nothing against 3d BTW. I think Nvidia's implementation is great and I'm just waiting for a 3D monitor with better 2D image. The main problem I have with PS3 3D is that everything is so blurred out that I can't even see WTF is going on.