Quoted from Law:

I disagree that a well-done integrated screen can't work and even add a lot to the game. Nemo's playfield screen and the way it is integrated into the playfield art is fantastic, and Multimorphic's use of their ball tracking technology and on-screen targets is a completely new take and, to be honest, what people that are used to phone apps expect and will want to play. It's also what I want to play - heh.
Nemo:
» YouTube video
Lexy Lightspeed Galaxy Girl:
» YouTube video

Quoted from PeteB:

Disagree with all your points except this one. I do actually think that having the LCD in the playfield is a much better place to put it for the player, but the problem is the attractiveness.
We're not in the EM era any more where a simple static artwork backbox would be enough to draw attention. Look around the world today, big flashy signs and branding is everywhere. Kids are being bombarded with marketing constantly on the internet, and so on and so on. The reason why WoZ still draws crowds of people standing to watch it is due to that huge screen in the back box.
In the UK the type of arcades I see now are full of redemption games, and coincidently all of the modern ones have either huge LCD displays or a ton of flashing lights all over them, it's almost an assault on the senses. Same with bandits and slot machines. This is where the Heighway games are going to flop on route unfortunately. Without that attention grabbing "thing" no one is going to walk up to it and sink coins.