120hz above 1080P is easy. Just get multiple monitors though the bezel breaks the 3D effect and there isn't any movies above 1080P. Since there is no movies about 1080P, what good would a higher resolution monitor do anyway?
No 120hz monitors don't restrict you to 60FPS. As their name suggests, you can have 120FPS if your system can handle it. Probably need the latest graphics card, like a GTX 580 to get 120FPS @ 1080P. So even if you had a 2560x1440 monitor with 120hz, it would need some serious computer setup to actually run it.
Personally I want a IPS monitor with 120hz or even a good S-PVA would do. I hate TN panels with their crappy colors and terrible viewing angles.