Warning: I am a video snob. I often lambaste electronics store managers for doing such a terrible job adjusting their display TV's. TV store managers have decided that the way to sell a TV is to jack up its color temperature as far into the blue range that they can, jam the contrast setting all the way to the top, irrespective of any blooming effects they get, and over-saturate the colors.
Anyway, the newest LCD panels have a property that theoretically makes them better: They can display a much wider color gamut. That means that there are more colors that they can display. They do this by creating panels where the base colors are truer to their theoretical values, and by pushing each color value deeper into its possible range. This means that the bluest blues are even bluer, if that makes sense.
But these extreme colors are ones one seldom sees, because they are over saturated. If you were to see the most saturated red or blue in any large field on your TV or monitor, it would make your teeth ache. These colors look like neon lights, for lack of a better comparison.
But a wider color palette is good in theory. My guess is that adobe photoshop running on a well-calibrated monitor could take advantage of this feature to improve the resemblance between on-screen and printed material, a key concern of graphics designers.
The problem is that most software and color choices on the internet and in movies are based on what, say, a level 256 blue used to be. A level 256 blue is now more saturated in the current monitors, but most software (and monitor drivers) are not smart enough to take this into account. That means that if you buy a new LCD monitor, you will likely be looking at colors that are more saturated and therefore that glow more than your eyes can really stand, and most graphics cards and monitors do not have a control for saturation (as I found today, having to take an LG 26" monitor back to the store because everything just glowed too much (I replaced it with a Samsung 2693M, which is much better).
You will know that this may be a problem if the literature or sales person describes the monitor as having "more vibrant" colors. This is a euphemism for saturation, and would be all fine and good if monitor colors have previously been under-saturated, but if anything they have been the opposite. Sales people like this feature, though, because the colors look more dramatic in their fluorescent-lighted showrooms and tend to make the monitor look "better" when next to less saturated choices. My advice is be very wary -- Videophiles tend to run away screaming when told that a TV has some gadget that makes the colors more vibrant.