TFT touchscreens give you 16 bit colour and no CPU load, TVout 1 bit colour and lots
of interrupts flying around to contend with (an issue if you are doing lots of stuff in
your sketch). TFT displays upto 480x320 are readily available on eBay, many of
which are supported by UTFT and the like.
TVout seems like a good way to recycle old screens though. And uses fewer pins.