Same with any LCD tv - the picture looks dreadful.
If you sit back about 3-4 feet it looks fairly acceptable. I use EyeTV on my 15.4" MBP and in full screen mode the picture is pretty poor - I hate how Britain is so so so far behind with the likes of HD.
Some crap about not being able to transmit on a certain waveband or something - similar laws as to why the UK version of the Airport Extreme (n) Base Station isn't as fast as the US version; ours operates on a slower frequency or something like that.
Sigh, we'll get there eventually - maybe by 2014 if we're lucky. There is a lot of Britain who still can't recieve fecking digital TV, nevermind us updating to HD over the air.