It depends what you want the video processor to do... and they can do lots: gamma, CMS, scaling, de-interlacing, noise reduction, stretching, on and on. I think you have to pick your pj first and then pick a vp to make up for its deficiencies. Like if you bought a JVC RS1, 2, 10 or 15 I would only consider a Lumagen vp because of the CMS capabilities.
Even with the 10K, I'd recommend the Radiance line. The JVC LCOS projectors look really good when they are properly calibrated and the Lumagen solution will give you that ability.
Even JVC offered an external VP solution to address this issue on the RS1 and RS2, which bypassed the internal Gennum VXP processing (which is no slouch).
What about for Vertical Stretching im still deciding wether to go by the RS10 or an external processor of some sort. eg Something like the Edge. Would an external do a better job?
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