My biggest problem with Kaleidescape, is that the offerings from the Studios is severely limited by a bunch of factors. WB, Lionsgate, NBCUniversal and Sony pictures are all that is supported on any Kaleidescape. The plus side of Kaleidescape is that there movie selection is getting good and the price is right.
The downs, nothing from Walt Disney studios, Paramount, or Fox studios. That leaves out a lot of movies. And no 3D support.
And the payoff is never certain: Some observers contend that a generation has already been trained to be content with the small screen.
Some servers can do non-encrypted playback to an A/V projector, but it's just a ridiculously expensive media player if you don't have a cinema projector.