I actually just registered so I could 'chime in' on this subject.
I have a 2011 MBA13 about a month or so old now and a Dell U2410 circa 2009.
Same thing, text is grainy, fuzzy, washed out, nasty.
I'm using a MDP to HDMI connector.
I know the Dell is in perfect operating condition. My Windows desktop, work computer (also a Dell) and 360 are all hooked up to this monitor and all is well.
Now here's a odd observation for anyone interested...
I'm have some old original Star Trek episodes i have on iTunes. For grins, I hooked up the MBA to the U2410 today and sure enough, everything is grainy, washed out, yucky.
The Trek episodes look great.... take it for what its worth. I don't mean 'okay' I mean great.
Now I'm thinking to myself. What are these episodes if nothing other than..digitized, remastered TELEVISION episodes, old-old, non-HD stuff too. Interesting given that the Mac thinks the U2410 is a TV.
Go figure...
Still, I'm as irked and irate about this as anyone else. This is my first Mac ever and I bought the Air for form factor, flash and the ability to hook it up to...you guessed it, my U2410.
What I'm reading is the MDP to DVI does "fix" the issue? But of course, no audio on DVI and I have audio pass through on my monitor going to speakers.
Very disappointing and no fix in site it seems. I wonder if there ever will be.
Anyway, just though I'd share.