> They do. A *lot* depends on having that interval available.
Yes, but the delay between updates can be very small in comparison to what are needed for CRTs. This can even be taken advantage of with normal analog VGA connections to get a higher refresh rate and/or resolution with the same pixel clock (see reduced blanking modes).
> The common case is watching videos or playing games, where it's not cleared up on the next frame refresh because another update has happened in the meantime. It manifests itself as a consistent discontinuity in the image. It's greatly irritating.
Or it may slowly move up or down the screen. It can be very distracting in the right situation.