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I've read the article at wikipedia about IPS panels.

But who should pick a IPS panel instead of a LED panel?

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just to note - 'LED' panels are TFT panels with LED lighting rather than Cold cathode florescent lit . a IPS panel can be LED lit, or cold cathode lit – Journeyman Geek Oct 14 '11 at 6:38
up vote 3 down vote accepted

Those are two separate factors (employing the popular car analogy, like two-door/four-door and manual/automatic). You can get IPS with LED.

LED is the backlighting. The alternate is CCFL (fluorescent). LED is better.

IPS is how the pixels work. Alternatives include PVA, MVA, and TN. IPS is arguably the best.

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So if I should buy a new monitor it should be a LED+IPS one? – jgauffin Oct 14 '11 at 7:07
    
That combo is the most expensive, but if you can afford it, sure. IPS with CCFL is also pretty good. If you do a lot of gaming, one of the VA/TN might have better response times, but the way the picture changes with the viewing angle bothers me too much. – Ken Oct 14 '11 at 17:21

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