Rubbish. High end CRT monitors go to sky high resolutions, ie the 24" Sony FW900 runs at 2304x1440. All it's down to is manufacturers skimping on the analogue side of things. Understandable, since it's not widely used in the mainstream and a large amount of those who do use it don't care that it's not native resolution, but it's not a tech limitation.
No, it's correct, original designs only where designed with minimal bandwidth in mind, it's an analogue connection, as technology has evolved, so has the bandwidth of VGA cables/transmitters/receivers, but crucially, even today, it requires a great deal of design and some cost to get a very clean 1080p signal over VGA, it is starting to approach what is feasible over analogue, and although you can get the high res monitors such as the Sony, it's going to require very very good cables and video sources.. I can't think of many video cards ever released that didn't actually struggle with giving a pin sharp 1600*1200 output..
This is the reason 1920*1080 is often shy'd away from, unless you have the necessary quality of source/cables which isn't the norm, and since poor quality leads to customer dis-satisfaction, manufacturers often stick to sub-Full HD resolutions..
That's all I meant.. There is a 'quality' to 'cost' thing going on that makes the Full HD resolution over analog more prohibitive.. I have always had high resolution monitors, so am very much aware how hard it used to be to even get a pin sharp 1600*1200 image, cables/graphics cards all had varying performance..
It's the same reason component video is generally limited to 1080i, as although in the right situation 1080p over component can be OK, in the main most equipment didn't have the analogue bandwidth (mainly cables no doubt, but some transmitters/receivers are also poor) in it's design to handle 1080p sufficiently..
The issue is really a lack of standards.. you have no idea if you buy a VGA cable or Graphics card what the bandwidth/noise levels are, you had to hope that when it says "Supports upto...." that meant with some quality!!!
HDMI is much easier, it has bandwidth specifications, and thus you know a certified HDMI 1.1 cable can do 1920*1080/60Hz, even if it's cheap..