What are the best looking lego sets out there that make excellent display pieces?

Modulars and Pirate Ships, to start.

Large scale exclusives, like Sopwith Camel, T1 Camper and Tower Bridge.

SSD definitely makes for an impressive display piece.

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How does the pirate ship ambush look

our MF and ucs r2 get the most compliments with the modulars not far behind

Death Star!

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Imperial Shuttle!Just beautiful!

10210 Imperial Flagship

If you're asking about current and recently retired I'd say;

Exclusives:

T1 Camper

R2-D2

SSD

Haunted House

Modulars

Standard sets:

Arkham Asylum

Helms Deep

Jabba's Palace

Ecto-1

Tower of Orthanc

Any large exclusive set and UCS sets. My favorite display piece that I have is probably the UCS R2 or the UCS X-Wing.

Green Grocer is the best display piece I have.

How does the pirate ship ambush look

I've heard that it isn't very impressive, especially when compared with other LEGO ships. The build is accurate though, which is probably a major reason why the dimensions are so low, especially the height (not including sails/masts).

10030 from what I've seen.

If you want something subtle, yet impressive, the 10241 Maersk Triple E Container Ship does the trick.  Cool colors, very detailed, nice plaque.  Also any Architecture set looks awesome in an office or den.

I think the 10181 Eiffel Tower displays nicely.

My other choices would be...

3450 Statue of Liberty (with the MOC stands)

10220 VW Camper. The wife even doesn't mind this set on display in our bedroom. Looks great.

10226 Sopwith Camel.

The initial Modular / Creator buildings as a block.

The annual Winter Holiday sets together.

10179

10213 Shuttle Adventure

Pretty much any popular themed set in it's Lego store display (especially Batman 1 and Indiana Jones)

Imperial Flagship although I'm not a fan of the colors used (the POTC ships are nice but honestly, don't compare).

75059 Sandcrawler does impress me. If that set didn't exist I would have mentioned 10144 because it proved Lego could make a decent larger SW set meant for "play".

I think my older 6080 King's Castle still displays well. ...even after 30 years.

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All modulars put together. Emerald Night Train my favorite. Haunted House second