I agree... unless you're doing photoshop or some kind of audio mixing where you absolutely need to have a ton of screen in a little space, 1024 x 768 is the way to go.
And I do web-development 9-5, Sir Nuke is correct, the majority of the world is still in the "Stone Age".
The majority of computer uses are also on 17" monitors... it's not about Money... it's about how much of your desk at home you are willing to sacrifice to big hulks of plastic. So while it may be great to see 1280x1024 on your 21" screen... it's a little too tiny even on the 19"
Oh, should have also added... I use the funkier 1152 x 864 on the 17" because that's the max resolution I can use for that monitor to support 85 hz refresh rate. Necessary when you have to stare at the screen for hours at a time.
800x600 is what grandmas use. 1024x768 is standard now. Put hundreds of systems together and that's what everyone I know uses. Anything bigger is annoying. Smaller gets tough to read for some people.