If you are frustrated by the current state of PP's monitoring capabilities, I encourage you to Copy/Paste the following into the Feature Request Form. Let's all band together and finally get this much needed feature DONE!
Any professional will tell you that an NLE needs an outside monitoring solution - for proper interlaced viewing, for color corrections, etc. Premiere Pro has in the past handled this job by passing it off to third parties like Matrox, AJA and Black Magic. But all of those solutions have their own issues and limitations (not to mention additional costs), and their time is at an end. The modern day graphics cards already installed in many NLE workstations are more than capable of stepping into the role. It's way past time Premiere Pro had a proper monitoring solution, without third party hardware or codecs. Here is what is needed and wanted:
1. Any graphics card with appropriate capabilities should work.
2. Premiere Pro (and After Effects, Photoshop, Encore) need to tap directly into the video port on that graphics card, be it composite, component, S-video or HDMI.
3. There is to be NO cloning or extending of the desktop. If Adobe apps are closed, nothing is sent out of the port.
4. For the Thumbnail and Source monitor, a signal matching the clip is to be sent to the video port on the card without alteration. Ports that cannot handle such a signal will get black. (i.e. Sending an HD signal to a composite port.)
5. For the Program Monitor, a signal matching the Sequence Properties (resolution, frame rate, field order, PAR, etc.) must be sent to the video port on the card. All scaling, deinterlacing, frame blending, pulldown insertion, etc. required to conform the footage in the sequence to the sequence settings must be done before sending the signal to the port, so that only a signal matching the sequence is output by the card, regardless of what's actually in the sequence.
Items 4 and 5 define what is "proper monitoring", and all third party cards should be doing this now. (If they're not, Adobe needs to jump on them to get it right.) Items 1 through 3 define the new feature we want and need from Adobe and Premiere Pro.