Point one - I was attempting to reference those devices with a simple, generic label for the benefit of those reading. Are you incapable of understanding me when I refer to a CRT based "PC monitor" or "HDTV"? I happen to be well aware of the differences, but I did not imagine that you would require such specifics in order to understand me point.
Point two - VGA == Component video.
You said...
it's faulty to even argue from the assumption that signal support is somehow tied to a set's imaging capabilities
...yet you continue to ignore the alternate, analog video input (component). Why is that? It is a cheaper solution than VGA in most cases and provides equivalent image fidelity. DVI happens to be superior to both of those standards and is becoming more widely available to the public interested in entertainment products.
Also, you wish to demonstrate how visuals today were being held back by the display, yes? Dreamcast VGA (or any other console for that matter) would actually work in this situation, but not in the way you intended. It does not represent the future at all...it represents existing problems. Comparing Dreamcast VGA to a game running through a PC at 1600x1200 resolution with maximum anti-aliasing and anisotropic filtering enabled would surely prove to people that current console video output is very poor.
Point three - Dreamcast games suffer from dithering artifacts far more often than PS2 titles do. Gamecube games actually suffer from these issues more often as well (look at Twin Snakes, PN03, Zelda WW, Mario Sunshine, and a host of others). A progressive scan supporting PS2 title displaying through a VGA adaptor on a standard VGA monitor will demonstrate a superior image in comparison to Dreamcast (I have seen this myself using Primal, Guilty Gear X-2, Soul Calibur 2, and SSX3 on PS2). Have you tried this yourself? The problem is, of course, that many PS2 titles lack progressive scan support. I do not feel that this is a major flaw with the hardware, however, as many of the most impressive looking titles on PS2 run in 480p without a problem (Burnout 3, for example, looks far superior to anything the Naomi hardware has ever produced).
DC games do suffer from serious mipmapping issues not present in the other three machines. There are distinct banding lines between each mipmap and this holds true for virtually all DC titles (with a few exceptions). When mipmapping is used on PS2, it does not suffer from this problem. However, many titles do shy away from using it. The ram limitations are obvious here, but you can't always fault the look. Afterall, Model 3 hardware also tended to avoid using mipmapping...and many people praise the look it delivered.
Point four - This obviously applies perfectly to this thread, as I could clearly demonstrate the difference for you in person. We will never come to an agreement here. Would you like me to list the (properly calibrated) equipment with which I conducted various tests with?
There is one question you have avoided multiple times, however...
Which games have you played in progressive scan on modern CRT based HDTV sets (such as those offered by Sony, Panasonic, and Toshiba at consumer electronics stores) and how much experience have you really had with them?
One FINAL question for you...
Did you ignore other output possibilities (ie - component and DVI out) simply due to the fact that Dreamcast does not support them? Yes or no?