A DVD player while not all that useful for focus, is mildly better than a 3" LCD from 3' or more away. I'm tending towards wanting some form of external monitor myself. Mainly because I raise my device about a yard above my head via a monopod. And it gets a little ridiculous to try and frame your subject a yard out from a 3" LCD. More so if the angle puts it where the sun is.
Be aware that not all camcorders output a video signal WHILE recording. My FH1 only outputs when NOT recording. Which is the main blockage for me actually taking the external monitor plunge. Otherwise my video device is a lazy facilitator. Raise up the monopod and check out the roof without ever using a ladder. Take it inside and watch it on the 42" HDTV over HDMI. Pause when needed. That hard to read label in the small of the water heater closet. Camcorder plus flashlight, no glasses needed. With an external monitor I probably wouldn't have to push record for some of that stuff.