I recently bought a 3.5″ screen off of Amazon so that I have a display for my PI.
For <$20, it offers enough screen real estate for the console, and some other small apps (weather?). I wanted it to be USB powered though, to prevent EVEN MORE cables coming from my setup. Luckily PI people are all over this: http://www.raspberrypi.org/phpBB3/viewtopic.php?f=41&t=17651. Minimal sodder skills, and I was able to complete the task in less than 30min. Pretty awesome now!
As you can see from the raspberrypi post, there are MANY variations of this screen. Mine originally wasn’t up there, but luckily in the nick of time thedishwasher posted my exact screen (we must have bought it close in time).
I am also running a slightly modified version of http://www.raspberrypi.org/phpBB3/viewtopic.php?f=41&t=51807 so that I can get weather updates in my familyroom. Pretty nice little setup.