Theres no issue with ati cards and 120hz, its simply the case that powerplay is yet another new version due to new hardware, and they neglected(rather stupidly, yet understandably) to add support for the drivers to decect the use of a higher refresh rate screen and automatically set higher 2d clocks in powerplay. Its understandable because almost no one uses 120hz lcd's yet, yet stupid because it wouldn't have taken really any effort to have a different profile.
As said, use gpu clock tool to disable powerplay or use profiles to set higher 2d clocks. I can't personally say if eyefinity is set to 60hz max or not, I wouldn't be surprised to see it capped to 60hz when one or more of the screens being used is a 60hz, not seen if anyone has 2/3 120hz screens and they are still capped at 60hz in eyefinity.
Their powerplay needs work, badly, but most powersaving/idling stuff is pretty shoddily done still, both companies have issues with it and both companies are only really starting to get to the point they can shut down certain parts of the core. Because of the number of shaders and the amount of clusters its rather tough in terms of core logic to have as effective power saving use as a CPU. Hopefully in another couple generations both companies will have idle power down to next to nothing and seemless moving between idle/3d and no bugs.