yea, its the only problem with running smash tournaments these days is that nintendo is the only company with a console currently that cant run in hd so when you play on a gamecube or wii, it lags pretty bad. to the point where its unplayable after you hit a certain level. anybody whos good at the game will refuse to play on a flat screen in any match of importance.
I personally would never play a tournament match or money match on a flat screen.
as a matter of fact. even with systems that play on them correctly. flat screens can have input lag on xboxes and ps3s if you dont get the right one. Thats why whenever somebody buys a monitor, you have to look it up to make sure the input latency is 2ms or lower.