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A 1080p projectors have more detail over 720p but the visual quality isn't twice as good to justify double the price. It's much like speakers, once you get to one price point the extra audio quality you get for spending a lot more is much smaller. Not to mention, a lot of people have cable or DishNetwork/DirecTV programming which are far from being perfect since they're compressed more (it's much better to get local broadcasting over the air). So, unless you're going to be watching a lot of BluRay movies or have one of those big satellite dishes then I say go with 720p.

Also, 720p isn't dead. It will probably take 2-3yrs before 1080p projectors are below $1,000 and that's the common price point for people to accept it as the defacto standard to get for a home theater. Of course, if you're rich then you won't even be reading this article since you'll just get the best that's available. And there's nothing wrong with that...but anyone even considering 720p vs 1080p tells me they should go 720p since budget is an issue otherwise there would be no debating the choice.