I noticed I have a thing called LED Motion Mode on my tv that supposedly boosts it to 120hz. It is really nice and unique but picture is way too dark in that mode and you cant up the brightness enough in that mode to find use of it - that plus like you said its probably only interpolated. I use it at the normal 60hz.
I have a Sony W650A 32". Maybe I'm doubting my self but this tv might as well be called a tv/monitor. It is reviewed by many as pretty much a top of the line 32" tv you can buy when it comes to picture quality, dark levels, contrast, bright room performance etc. You can literally set this tv in the brightest room and still get great picture. It has 32ms of response time (which is pretty much the lowest you can go with a tv) in game mode. I know its not very good but neither horrible.
To be honest this tv has very good color - sharp, crisp and looks like any monitor at windows screen and if not exact then pretty darn close. It also has 12bit color production or something like that.
I've been playing a game recently called The Evil Within and its quite something just plain eye candy. Been playing it in game mode which has the Black Corrector on Off, Adv. Contrast Enhancer on Off, Detail Enhancer on Low, and Edge Enhancer on Medium as well as dozen other settings like Reality Creation for adjusting fineness and noise for realistic picture.
It also has this thing called Auto Light Limiter which controls the backlight to reduce excessive brightness which is great for regular surfing on the web.
The only thing bad about this tv is the price. It is expensive at around 550 retail for 32". Got it for 450 on sale but its been discontinued shortly after I bought it. Expense I guess.....
Edit: I have to say though when playing The Evil Within at 60fps its smooth but the picture does feel like its trying to catch up a bit unlike at 30fps I guess its the input laq or maybe I wouldn't have this issue with native 120hz....I have to say though the game has a cinema feel to it and so I keep it at 30fps but then again I could be full of sh*t.
Don't have none of this in sim racing games even at 120fps plus
IGN did a comparison test recently between XboxOne, PS4 and PC for Assassins Creed Unity and I believe the PC version had best graphics but you can definitely tell the washed out color on the PC by the monitor I presume. Whether or not IGN is full of sh*t too and used a cheap monitor we would probably never know