I have a PT-60LC14 and it's PERFECT for playing video games. I bought mine back in November of 2004 and have had no gripes since. The four sets of component inputs on the back will come in handy for plugging in your Xbox with the HD kit, as well as your PS2 and DVD player. Though you say your not too big on TV, the set's HDMI input will be great in case you do decide to get an HD STB. As far as pixelation, haven't noticed any, even on fast-moving football games. I don't think this is really an issue with the newer generations of RP-LCD TV's.
I originally wanted to purchase the Samsung HL-P6163W, but was turned off by some of the issues that came up (audio sync, screen smudges). I also didn't really like the softening of the picture that the HD3 chip produced. Once I found out that my wife saw rainbows, I scrapped DLP all together.
I decided to go with the Panasonic PT-60LC14. Here's why: 1 HDMI input, 4 component inputs, 3 S-video inputs, 2 RGB inputs -- Can't really beat the amount of inputs this set offers. And of course, the outstanding HD quality and impressive SD capabilities. Plus, I was able to get a GREAT price on the set. I know that AVS Forum asks its members not to post prices, but I can tell you that I was able to get the Circuit City in Wayne, NJ to price match Electronic Expo on a NEW SET for just over $2200. I then was able to purchase the display model Z-Line LCD stand for $150 (retails $300). Not a bad deal!
Good luck in finding your new TV!
-Chris