It's a pretty cool setup, but there's a bit too much displaying going on. Boxes and stuff like that take a lot of place, without being of much use. I'm not saying he should dispose of them, but maybe keep them somewhere else. Other than that, it seems pretty sweet. That couch, if a bit bloat-ish, looks comfy and the "mame-table"-thing behind it is a cool touch.
As for the LCD-TV, I was content with the picture I got from mine before I got a PCE and my TV couldn't really handle it. Saturn & PS1 fared pretty well on it. And let's not forget about how much space a CRT takes and how much they weigh. But seeing how much money he must've thrown down for that, maybe he could do well to invest in a scaler.
Edit: Wow, just hit 200 posts. I know that post count really doesn't matter much, but, can't help to be proud *sniff*