Actually, there's a whole sub-culture developing around the concept of building a home theater centered around PC as the DVD component player.
You don't need a monitor to do it. And your HDTV-capable TV doesn't
need to have an SVGA input, the standard five-cable HDTV input is enough. You just buy a "breakout" cable which converts the SVGA pins into a five-wire HDTV component cable and you're set. Oh, and you need to download PowerStrip so that you can set some custom rez's and frequencies that your HDTV will accept without letting the smoke out.
I actually tried this on my 46" HDTV-capable big-screen TV, and it worked. However, several issues prevented me from using this as a viable long-term way of watching DVDs. In theory, though, the progressive-scan output from your PC should look quite good on any HDTV-capable television set.
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Tony Fabris