This just randomly happened to the screen a few days ago while in the middle of use. Restarting did nothing. Changing the resolution helped a bit (800x600 is what's pictured above, and that was by far the clearest option - the desktop was barely visible with native resolution).
Figured I'd check here to see if anyone has a fix before taking a trip to the Apple store, although I'm almost certain it's a pure hardware problem (hooked it up to the TV through HDMI and everything looked fine).