Laptop display vs monitor

I've recently got a new 24" BenQ model G2420HDBL LED to connect it as an external monitor to my notebook. It's 16:9 aspect ratio at 1920x1080 screen resolution.
Compared to my notebook's monitor [which is a 15.4" 1440x900 screen resolution WXGA+ X-black LCD with LED technology] this looks pretty awful. I've tried calibrating the colors all day and the best I could do was far inferior to my notebook's display. For example the white on my notebook is milk clear compared to 'bluish' white of the monitor. Also, other colors looks bad and seem way too saturated.
I tried connecting this monitor to my other notebook with windows 7 on, and it looks pretty much the same. I'm using a VGA cable to connect to it BTW.

I'm trying to understand if the colors look this bad because of the cheap TN panel or something else entirely. I know that connecting via DVI cable may increase the image quality; could this be a reason? Generally, are notebook monitors much better than desktop monitors with TN technology ?

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