In the past few years, technical progress has determined traditional electric power system conversion to Smart Grids, and consequently empowered a worldwide renaissance in the forgotten PQ field. Since the installation of PQ monitors is currently associated with high investments and operational costs, it is inappropriate to install a monitor on each grid busbar. Hence, grid operators must establish the best cost–benefit scenario for monitors installation and achieve maximal observability with a limited number of analyzers. Firstly, this paper presents a review of the state-of-the-art of displacement strategies, and discusses them regarding the tendencies of node selection criteria, the test schemes used, and the grid size. Secondly, the relevant fundamental issues which must be solved in the future in order to eliminate restrictions in PQ monitors’ allocation planning are presented and discussed. These issues concern the treatment, interpretation, and assessment of PQ events, measurement chain technical features, PQ’s role in the grid planning stage, communication technologies, and other remote monitoring aspects, and integration with other Smart Grid applications. The provided insights are based on experience which has been obtained during the PQ measurement campaign in the Lithuanian DSO grid. Finally, a PQ system development strategy—both short-term and long-term perspectives—in the Lithuanian distribution grid is presented, including monitors allocation criteria.