Agreed. Most TV's - and I dare say even HDTV's aren't designed for tasks like web browsing. I can't read small text off my tv screen with my pb hooked up, can you?
Before I sold it, I had an extra G4 tower hooked to my TV. I created a different login called "TV". I maxed the OS font size (16 pt), enlarged the icons, removed un-necessary stuff from the dock and enlarged the default type size in my browser. I also adjusted the display calibration so it looked nicer on the TV (A MUST DO!). Change the color Display Profile to NTSC (PAL if you live in europe). It wasn't perfect but it was definitly better than the default configuration. YOu might also want to adjust options for each game on your TV account to use the lowest screen resolution configuration available so it's easy to read the menus and displayed type.
I've only been using this software for the past week, but it is absolutley brill. Just can't wait to get a Mac mini now, and then hook it up to the TV for parties!