Conclusion
So just how good is the Dell Studio XPS 16? That really depends on what you want to do with your laptop. If you're just a typical business user writing email and surfing the web, it can certainly do everything you need… but then so can pretty much any other modern laptop. It has a good set of features, looks reasonably attractive, and performs well. It's not too expensive, but then it's not inexpensive either. As a portable multimedia platform, picking up one of the models with a Blu-ray drive will allow you to wander over to your friends' houses and watch movies on their HDTVs. Just don't plan on watching any Blu-ray movies without the power adapter - or the 9-cell battery at the very least.
For most users then, the Studio XPS 16 is a good laptop that's worth a look. Many people are concerned about price these days, so ultimately they might have to look elsewhere. Take a walk down the aisles of any electronics store and you're likely to see numerous laptops selling for under $1000 that can do pretty much everything you need. They might have a slightly slower processor, no discrete graphics chip, and/or no Blu-ray drive, but most people don't need those things - especially if it means decreased battery life. But that's the summary for "most" people.

There's another category of users where our recommendation changes dramatically. If you happen to spend most of your time in Photoshop (or similar programs were color quality matters) and you want a laptop that won't hold you back, you seriously need to consider the Dell Studio XPS 16. Maybe you just want a high quality laptop display, since that's what your eyes will look at when you're using the computer. For either class of user, you should look at competing notebooks that use the same display or something very close to it. (The Dell Precision M6400 and Sony VAIO AW are also supposed to have great LCDs, but they're also larger and heavier.)
I'm not going to give the Dell Studio XPS 16 a general Editors' Choice award, since there are aspects of the laptop that I think could be better (temperatures being my primary concern). However, if you happen to fall into the second category of users I just described, it definitely deserves a gold medal. Yes, the RGB LED panel in the Studio XPS 16 is that good. In a word: wow! This may be as good as it gets in the world of laptop LCDs until OLEDs become mainstream. If you're like me and have been repeatedly disappointed with lackluster laptop displays, the Studio XPS 16 may finally restore your faith in humanity. This is change that even I can believe in!
Update: If you're interested in the Studio XPS 16, Dell is currently offering a special price of $1250, which includes the 1080p RGBLED display. It's a total savings of $343 and is only available for two days, so you'll need to act fast! Incidentally, that special price doesn't have Blu-ray by default. Still, it's worth snapping up if you have the money available!