What is the difference between the much-hyped 240Hz refresh rate of the LED TVs and the 600Hz one of the Plasmas?
The latter models are a LOT cheaper now, especially without 3-D capability.
And, wouldn't it be a no-brainer to take a 600Hz refresh rate over a seemingly measly 240Hz?
That question is a misunderstanding of what those specs actually mean, and what they're for. They're actually to address very different things. It's just totally misunderstood by both sides (the people who buy on numbers, and the people who think everything is marketing).
The hz rate for LCD panels (60hz, 120hz, 240hz, 480hz) is to address the inherent slowness of LCD panels, in terms of response time. Because LCD panels take 2ms or longer (typically 6-8ms or higher for grey to grey, the easiest and fastest colors to switch from) to switch from one plane to another, you get ghosting, judder, motion lag, or other motion artifacts. The higher hz panels do help reduce these problems, but they also add new ones. The most noticable problem is it changes the appearance of background images, often making them stick out unnaturally.
Plasmas are so fast their response time is undefined. However, in LCD terms, it would be an equivalent of roughly 0.001ms. Because of that, you don't have the same motion issues.
When talking about plasmas, the 600hz (or 840hz on Pioneer plasmas) refer to the subfield drive. 600hz means the display is processing 10 sub-pictures per frame, while 840hz means 14 sub-pictures per frame. What this allows the display to do is to keep the full 1920 x 1080 resolution while the picture moves.
What is a dirty little secret in the display industry is that those shiny new 1080p displays that everyone goes so crazy over often cannot actually resolve all of that info once there's motion. The faster the motion, the lower the resolution. In fact, most 1080p LCD HDTVs from just a couple years ago would drop clear down to 480 lines or so once motion speeds up.
At 10 subfields, a full 1080 lines are resolved even with relatively fast motion.
This being said, the human eye is NOT good at picking up resolution with respect to motion. In other words, when looking at a static picture, our eyes can easily tell the difference between a high-res and a low-res image. However, once there's motion, we have a much harder time telling.
How much of an effect this will be depends on the perception of the individual, as it does vary from person to person.