The technology of LED projectors is improving, with new models being developed and coming to market: Vivitek Qumi now, and new models from Optoma, Acer, and Viewsonic announced coming to market in later in 2011, all with higher resolution and light output than models costing the same a few years ago.
There was a time when fragile, hot-running vacuum tubes were replaced by solid-state transistor semiconductor devices. In the early stages of solid-state technology, transistors couldn't carry the capacity of tubes, but that changed as the performance of solid-state devices progressed. Wait for them to warm up, wait to cool down, tolerate waning, dimming performance over time, and hoping they don't pop . . . . UHP lamps seem a lot like the old vacuum tubes. Right now, the advantage UHP lamps have is brightness, when that is matched by LED (or some other technology), a very welcome technological changeover will occur. The market for ever-higher performance LED projectors will grow, and at some point, the concept of replacing a costly UHP lamp after a relatively brief amount of time will seem as cumbersome as replacing vacuum tubes was in old CRT sets.
There will be doubters, pessimists, and those who hang on fanatically to some current hardware, (flat panel displays, et al) as the "now and forevermore" best technology. I want whatever technology that can put a clear, high-def widescreen 120" or larger image on the wall with high reliability, and low cost of maintenance. It's the results that matter, not the means.
Currently, $1500 - $2000 or so, buys a 1080P 55" to 60" flat panel, but the comparatively small size of these flat-panel displays just isn't enough for large gatherings in auditoriums. The 30 people in the first three rows might enjoy the presentation, but the other 70 further back aren't going to see much detail. Are people paying movie ticket prices to sit in a room to watch movie premieres on a 60" flatscreen? No! At least not in the huge numbers who are paying to see films in theaters with two-story high screens. Flat-panels are best suited for home video viewing (TV shows and such) for a very small group, while 100" and larger screens make for home cinema. But, this a matter of person preference; there are people who prefer sitting 14 feet across the room watching movies on a 46" screen. Sitting 14 feet from a 120" screen is far more enjoyable to me.
The current and upcoming under $1,000 high-def LED DLP projectors are a breakthrough for those who want a home cinema experience.