I think that may be a 70's thing... projection TVs were never that good, they were just the first attempt at getting a bigger picture. Regular NTSC at the time was also pretty poor. Off angle viewing was impossible, etc.
http://en.wikipedia.org/wiki/Display_resolution
DVD video quality is more than acceptable. An HD projector (720p which is better than DVD 480p which is better than NTSC 480i) does an awsome job, and I think you get a decent projector for $800-$1000US. Mine was $1200cdn including a spare bulb. Big TVs quickly hit those prices. I have a Sony 32" LCD TV and I love it, but the projector holds its own compared to that. Oh, and I'm just projecting on the wall.
The only downside to a projector is the fan noise. (I'm doubly cursed since I'm at a high altitude, and I need the fan on a bit more.) I need to build a ceiling mount hush box one of these days. Generally though, I tend to watch movies with lots of loud action violence and CGI on the projector, so noise is less of a problem.
Chick flicks are strictly upstairs on the 32" screen, which I can ignore while I read a book.
