Hi, Yes the Dell 2209WA's 22in e-IPS panel is amazing

I would say it is well worth it over a similarly priced 24in TN panel.
As for watching videos - the 16:10 aspect ratio just means you get little black bars at the top and bottom of the screen when playing standard 16:9 DVDs. However, I like watching old stuff like Star Trek TNG/DS9 etc - and this is presented in 4:3 so the 16:10 aspect actially works better than the even wider screens
As for HD, DVDs can't play HD they are usually only around 720 × 576 resolution - so no matter what monitor you pick - your PC will need to upscale it to make it fit. Blu-Rays and HD video files on the other hand will be downscaled to fit the monitors resolution - but in my experience this is done well and looks great - especially on such a high quality panel.