So I grabbed a projector a while back for work, and well, I screwed up. It ended up being far too large to be portable at all (I'd need to take it around), but that's beside the point. It also only does fairly bad resolutions natively. Through woot I was able to get it for a total price of about $350 after a rebate.
Anyhow, I've finally had a chance to test it out, and I'll never buy a television again.
DVDs look incredible on it, and whatever method it uses to create a fake 1280x720 display works amazingly. This is all without a screen - we're displaying it on a wall. I watched a few movies, and it looks better than any normal TV that I've ever seen. They have better models that cost about 5x as much that will do better resolutions natively with better contrast, but this garbage model is still superior to any DLP that I've seen so far. It can't hang with the plasmas, but I'm also looking at a 10' screen instead of a 50".
Anyhow, I see myself buying projectors in lieu of "nice" televisions for the foreseeable future. I might still pick up small monitor-like televisions for certain purposes, but not for home theater viewing.