I doubt DVI-DVI vs DVI-HDMI would make any difference. Both carry HD video signals. I use DVI-HDMI on my PC to connect to my Samsung 26" CRT HDTV and the picture is excellent.
On alternatives, in 22" the Dell 2209WA e-IPS is pretty much the best one now, but it's 1680x1050. It's priced in the TN range though. If you're playing primarily on PS3 though, I'm pretty sure you're limited to 1280x720 anyway and you didn't say you were watching movies on it.
I am honestly considering that screen, but if I am to buy a screen in this day of age I feel like I want 1080p at least.
To Gilly, I bought a DVI to DVI cable, didn't help at all. But through both DVI to HDMI and straight DVD has this mode called sRPG that you can choose. (same menu that has the movie mode, photo mode etc) But everything seems washed out when I try sRPG.