You must have a horrible 22" widescreen in that case. My 22" got no probs with full screen, the image quality is decent.
Nice way to waste space and quote my entire post for no reason at all there, sparky.
No, this is actually a well-reviewed monitor, the ACER AL2216W. And as I said twice now, there are two ways for lower resolutions to be stretched (three, actually, if you wish to be picky about it).
One: the nvidia driver itself will stretch and anti-alias/interpolate the pixels sending a native resolution image to the monitor. This option is actually the best to do in most cases that have no text in the accellerated app, but if text is shown it becomes fuzzy and more difficult to read. Most people don't even know the option is there in their drivers.
Two: let the monitor itself handle the stretching, which is what you are assuming is happening here, the end result of this is quite as you say, up to the monitor's stretching hardware quality. The monitor itself's quality otherwise has little to nothing to do with what type of stretching is built into it - some high end LCDs don't even have stretching, and display lower resolution apps at their native res to avoid the loss of quality with stretching altogether.
Three: set the application to the monitor's native resolution and let the application decide how to stretch itself to that resolution. This is the absolute best of all of the options if the application can do it properly as text is not interpolated (fuzzied) at all with this one, and the application itself is the only one that truly knows where text is being displayed (and text needs scaled instead of stretched to keep quality).