Join Date: Jul 2006
Location: Maple Grove, Minnesota, USA
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IMHO, for scaling from 720p to 1080p that Denon with Realta will serve you very well for a long time. Any new improved VP will only provide minor improvements with scaling compared to the Realta which was pretty dialed-in to begin with.
External VP were very very useful for a long time as most displays (and projectors) weren't great at de-interlacinng (the key step prior to scaling) and/or scaling itself. Since there is no de-interlacing involved going from 720p to 1080p it is an "easier" task for many components that have adequate scaling abilities but poor de-interlacing capabilities.
Today we find ourselves in a world where decent VPs are now built into many receivers and displays and the original need is lessoned and external VPs have become useful for tasks such as extreme fine tuning scaling (overscan %), colorspace, keystoning, ect. ----tasks that the VPs in receivers and displays can technically do but are often not exposed to the user. In addition, current generation VPs also provide useful capabilities such as CMS (color management system) to really get the picture looking perfect.
In your particular case I'd suggest keeping the Denon or removing it entirely if you have a new(er) receiver or display with a decent internal VP. Unless, of course, you are getting some "upgrade-itis" or you need/want some additional capabilities and in that case I'd suggest looking at the Lumagen units. FWIW, I recently removed a dedicated VP (DVDO Edge) from my setup after trying out the processor (HQV Vida 1900; a descendant of the Realta) in my new receiver.