The response time rating manufacturers give don't mean much. It's a grey-to-grey measurement, which means 21% pixel blackout basically, which isn't very much. If 5 ms would be the real response time, the refresh rate would be 200 Hz (0.005 s= 1/200 s= 200 x 1/s= 200 Hz). The screen is however only capable of much less refreshes per second than the response time indicates, and if it were able of 200 refreshes per second, you would probably have to guess the image, because every part of the screen with movement would just look uniform grey.
Some "gaming" monitors that are held in very high regard by people involved with gamer marketing, have auto-interlacing features, that only render every other line so that the image looks clearer when the monitor is refreshing at 120 Hz. That means that basically only part of the pixels that you really want to see as fast a possible, are rendered immediately, and the rest in the next cycle, which reduces the advantage of the higher refresh rate. In 3D applications, this also reduces the 3D effect, which is based on alternating left-right occlusion. So it's definitely true that if you want a faster monitor for the competitive advantage, you have to live with the most shitty looking video, there just is no other way, anything you do to improve the image quality, costs speed.
A full pixel refresh, not just grey-to-grey, because of reminiscence, takes much much longer than 5 ms on a monitor rated for 5 ms response time. That is also normal. On old CRT monitors, the reminiscence would be sometimes several seconds even (the monochrome IBM monitors of the 80's were notorious for their reminiscence, yet they were preferred over the colour monitors with much lower reminiscence, because of the higher resolution, as colour monitors had really low resolution and nothing much could fit on the screen), so digital flatpanels aren't all that shabby when it comes to refresh.
I really like AH-IPS panels from LG, whatever brand of monitor they're used in. They look really good, even with disabled dynamic contrast, and they perform exactly like one would expect in terms of latency and reminiscence, that is, 99 % of what is technically possible. If you want more than that, it becomes really really expensive for only a little gain in performance. Most LG panel equipped monitors have a built-in low latency setting for gaming that can be enabled through the menu. That works pretty well.