My own thread about this was locked pretty sharpish (sorry, I couldn't find anything by searching for VGA), so I'll have to respond here. I quite understand the reasons for the Pi not having VGA but as ways to add it in future are being considered, it seems reasonable to offer my thoughts.
Firstly, obarthelemy suggested there's a bunch of DVI LCD monitors in the $10-$40 range available on ebay, which may be true in the US but in the UK it seems you're unlikely to find much below £30, which more than doubles the total overlay per Pi.
ebay UK DVI LCD's under £40
I can see how in the developing world, where they might only have a CRT TV and no monitors, and perhaps don't sit around watching TV as much as we do in the west (meaning that the kids can get the time in on the Pi) the composite out will be brilliant though.
I wonder if a model with VGA does become a possibility, whether it will be able to make it like ATI graphics cards, which allow the use of a simple cable to convert the RGB into a TV-SCART compatible format like so https://sites.google.com/site/joecontra ... art-basics
(I've recently done this to build an HTPC for someone who only has a CRT TV and no prospect of this changing any time soon). It does require the use of custom timings, but I imagine that's something that could be set as an option on the Pi.
The reason I suggest this is because then the VGA port could also drive SCART TVs, with a much better picture than composite (which could be dropped to save a few pennies), but then again I think SCART is a Euro-only thing, so this wouldn't be much use in the developing world