Aye, 85Hz is generally the point considered as cross-over point. Personally I notice the flicker at 75Hz but not at 85.
120Hz is for 3D gaming/video. Thanks to differences in design, you'll never notice any flicker in a LCD panel. Getting higher HZ does have a point though: a lot of games use V-sync to limit a games fps to the monitor's refresh rate (often optional; it's to avoid "tearing" of the displayed image). So, with a 60Hz monitor that limit is 60. Some gamers prefer higher maximum framerates, so they'll want a display that can do more Hz.
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