You can get a CRT projector that can do 720p very well for under $1000. If you're lucky you could even get one that does 1080p well for under $1000. I got a Sony 1292Q for around $550.
A CRT projector with 8" tubes, electromagnetic (EM) focus, and liquid-coupled (LC) lenses would do 720p very nicely. A CRT projector with 8" tubes, electrostatic (ES) focus, and air-coupled (AC) lenses would do 720p, though it would be slightly soft. I have a Sony 1271Q (8", ES, AC) and 720p looks pretty damn good on it. I'd personally take slightly soft 720p with great contrast, black levels, color fidelity, no screendoor, and no rainbows, over the sharper and brighter picture a digital would provide. A 127x with good picture tubes would go for maybe $300 to $600. The problem with getting a CRT projector is that you either have to patiently hunt for one that's at least semi-local on eBay or spend lots of money on shipping. In addition, you'd have to run it in an environment with total light control, a.k.a. -- a really dark room. Try a search on AVS's for sale forum, VideogoN, eBay (to search for Sony CRT projectors simply search for "VPH"), or check out Curt Palme's inventory (www.curtpalme.com