Well I hope this picks up, maybe the next gen will have better optics/lcd with the same lighting system. I learned quickly that gaming rules on120" HD screen, but sucks when your bulb dies 3 months later. Then its back to the little tv. With the price of the DLP's dropping I wouldn't have a problem giving this a spin if it drops in price bit. It could be a good backup for normal tv/games and the cool winamp visuals. It is worth mentioning that a friend got one of the chepo low res PJ's and it really wasn't that bad. His kid still uses it for movies, and cheesy vid games. It doesn't compare to today's stuff, but to a 5 year old it is amazing. I'm sure this lumalab will be much better then those things.
As for the quality comments, of course this is this thing is going to be rough. Hell half the time the big boys get it wrong. Remeber the Z2 problems, and their great warrenty support. I think if this makes the $299 range then people will start to open up to it. Heck I would give a try, since its just the price of bulb, BTW I've replaced 2 already on my Z3 so It is under lock and key and babied.