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whats the advantages of getting a moniter with VGA over the typical LCD
You cant say VGA vs Typical LCD... the issue really is VGA vs NTSC/PAL. VGA, XGA in most of the LCDs mentioned on this site supports a maximum resolution of 1024x768 and can take a signal directly from a computer's VGA out.
NTSC/PAL LCDs have a maximum resolution of 640x480(at best). Also it requires your computer to either have a composite out or S-video out. S-video out is common on alot of mini-ITX boards. However s-video can sometimes leave something to be desired. Image quality is also not usually as good on these.
The biggest issue is the resoultion though, the higher the resolution the more information(albiet smaller) you can display at one time. This becomes and issue when using GPS software that has lots of buttons and readouts.
For the two links you gave me the more expensive VGA one would be the way to go if you MUST have single DIN. However as im sure youve noticed most people go for modding a 7" widescreen to fit in a 2DIN slot.
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does a touchscreen work simply as a mouse?
Yes a touchscreen acts just like a mouse in essense.