In my opinion, YES.
The video signal your Mac produces is purely digital, but then it must be converted to an analog signal and then back again to a digital signal by the LCD with a VGA connection. DVI passes on the more pure, original digital signal to your display which makes for a crisper, more authentic image.
On my 20" LCD I see fine lines and patterns (like dotted grid lines in Photoshop) "dance" because of the VGA signal form my eMac. Unfortunately, the eMac cannot produce a DVI signal without some serious hacking, so I must live with it until I am able to afford a MacBook.
Also DVI is "smarter" and will usually sync up with your display to the best of its capabilities, which means there's no need to stretch, move or degauss the image as with a VGA signal. That is, it's usually more "plug and play" with little to no adjusting or fiddling needed.