Well if you want LED then its right to drop the dell ips monitor.
The HDMI shouldn't bother you but it does take out convenience; the drop in quality when using HDMI-DVI convertors is something I have on idea on but am sceptical
For HD movies you can use either HDMI or DVI to output from the PC. For a TV HDMI is better as it has audio stream too. For monitor both are the same.
Dell UltraSharp U2311H is not an LED but an IPS screen whose only advantage is wide angle view which is not much of an issue with me as I will be the only one in my house who will be using it at a time. Also it does not have a HDMI jack. Will HDMI be required if all my movie data(even HD Movies) input come from the CPU.
PS:No need of audio for me as i have good speakers
Oh ya I keep forgetting that IPS has wider viewing angles. I concentrate too much on the colour gamut and contrast. I am sole user of this PC so I don't bother with viewing angles much.
I was recommending Dell for the better panel and picture quality.