This is a good point, however I don't think developers have fully grasped how best to implement this yet. Maiden is a good example of how to do it right, mind.

The opposite was DMD and even alpha-numeric's biggest advantage: the display is so simple, the developer is forced to spell out the goal to the player in large monochromatic letters/figures. This way, it only takes the player a quick glances to gather whatever information they need, be it score, progress, objectives, etc.
While an LCD can certainly display more information and allow artists to create a great show for spectators—Maiden and BKSoR are great for this—I think some games can get carried away and display too much at once. I seem to have the most trouble with SW: none of the text in the game has any drop shadow, making most colours of text hard to read and blue/purple text almost impossible to read. I was hoping a code update would change this.
Of course, any pin based on a movie just has to show tons of clips of the movie over information about the game, though DMDs did this, too. At least it looks as it should on an LCD.

I think DMD is better from a gameplay perspective, but as amusement machines, upgrading to LCD is a no-brainer. Developers are only going to get better at using them, too.