Hey guys, I found something! Apparently our "smudged display" is not exclusively pwned by iMac, or all-in-one PC. It is something common in LCD world.
Commonly it's called clouding, or MURA (Japanese, means unevenness). You can google "Mura LCD" and you'd be amazed knowing that your iMac is not alone in this. Basically anything that use LCD display (anything from HDTV, monitor, iMac, Cinema Display) induce the risk of this problem.
To sum things up, this Mura problem caused by stress applied to the LCD matrix (heat, mechanical) and yes, it is irreversible. Once you have this defect on your LCD, you'll have to replace it. I had a thought earlier that this smudge was caused by heat came from GPU/CPU heatsink behind. And yes it is. Continuous heat causes this problem.
So, things you can do to reduce smudge display or prolong your LCD life:
1. Ramp up your fan (yeah, smcfancontrol)! Stock fan speed is just not enough, the reason of iMac having so much of this problem is due to heat. LCD HDTV is not heated as much as iMac because it has so much less component inside, so it'll less likely happen on them (although it's still very very possible, remember it's still LCD).
But yeah, ramp up your fan a bit for normal usage, 30 - 50% from stock RPM should suffice.
2. Reduce gaming time, yeah yeah if you bought hi-end 27" iMac (like I did) you'd bang your head to the wall because it has a nice GPU, but really, limit your gaming time. Don't do it too long, 1 2 hours a day or 7 - 10hours a week top. It is for your own sake and your iMac longevity. You want to bang your $2000 computer, well suit yourself.
3. Make sure your iMac has enough ventilation and breathing room. Air circulation is important to keep your computer, and the display cooled.
With that said, I think it will be useless for us to sign up some p e t i t i o n regarding this problem. To be fair, it's not the Apple's fault either. It's just the nature of LCD itself. And all Apple should do is moving the heat source (heatsink mainly) to be not in behind LCD (i.e the chin). As long they keep the same design, this problem will come back to you, again .. and again .. and again.
I really hate LCD for a long long time now. I had a bad experience with 2 LCD HDTVs I owned earlier, it fails between 2 years! Now I only go Plasma for TV, if only iMac comes with plasma, CRT or LED option, well I won't take the LED LCD for sure. Real garbage display technology IMO, too much drawback induced for the thinness sake. 😀