In all likelihood you probably haven't caused any damage at all. Isopropyl alcohol will leave a pretty persistant residue on glass especially glass with a coating. Excessive and repeated use can begin to cause damage to plastic coatings and such but that's not really what's on the iMac. The image distortion you are seeing is most likely a result of that persitant residue. That includes the pixel issues. Your best bet is to just give the screen a good cleaning with a sligtly damp (with water) lint free cloth and remove the residue.
We used to clean Macs with alcohol wipes all the time at the Genius Bar and never had any issues. We had even on some cases used the especially caustic wipes that are used to clean thermal paste off of Mac Pro processors when we'd get a particularly heinously dirty machine in for repair. Believe me, if we'd caused damage that way we would have been on the hook for it.
We used to clean Macs with alcohol wipes all the time at the Genius Bar and never had any issues. We had even on some cases used the especially caustic wipes that are used to clean thermal paste off of Mac Pro processors when we'd get a particularly heinously dirty machine in for repair. Believe me, if we'd caused damage that way we would have been on the hook for it.