When I opened up my REVB iMac YEARS ago, I remember there was an odd display looking connector coming out of the main logic board chassis that connected to the monitor. I assumed this was an internal VGA cable. Is it possible to connect this to an external display?

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Yes. The connector is a dumbed-down version of the old 15 pin (two row) Apple monitor connection that was standard during the Mac II/Quadra/Beige PPC years. ("Dumbed down" in the sense that it seems to lack the sense pin support of the original version.) A standard Multisync Mac-to-VGA dongle will let you connect a VGA monitor. (And run it at higher resolutions than the internal monitor supports, the exact limits depending on whether you have the optional VRAM upgrade DIMM installed.)