Hey, Cthulhu, long time no read.
I've always been rather annoyed by the diagonal measurement of screens too.
We have a 26" TV (that I've had for 10 years), and I was trying to decide how big an HD screen I'd need to get the same height (I like the size it is, okay?

). That ought to be a pretty straightforward business, but I too had to trot out the pythagorean theorem, and the ratios, and
still ended up taking a tape measure to the store before I'd believe my results (~40" if anyone wants to know). And the annoying thing is that I just wanted to know what size screen I should be watching the prices on, as I don't plan to replace my perfectly good TV until I have to.
I guess they came up with the diagonal measurement because it gives them a single number to put in the advertisements rather than two. And I s'pose I've gotten mostly used to it, as long as they don't go changing the stinkin' ratios, anyway.