Greg:
I have a DLP and I have a Bravo D1 DVD Player. The advantage of this setup is that the Bravo D1 allows you to keep the image signal path in the digital domain until it reaches your eyes. While ThumperBoy may be correct about the upscaling introducing artifacts, I can assure you unconditionally that an upscaling, DVI-output DVD player will give you the best image on your DLP that you can get from a DVD. See the October (I think) Widescreen Review of the Bravo D1 for a more authoritative description.
720p is the resolution of your DLP and your DLP scales everything to that resolution. However, if you are using a non-upscaling DVI-output DVD player, your DLP scales the image up to 720p AFTER some D/A and A/D conversions. There is MUCH MORE noise introduced into the image signal by this process than by the scaling process. And, in this case, the DLP is upscaling this noise to 720p along with the image. So, if you can get the image to your DLP WITHOUT any D/A and A/D conversions, you will have a better image. Period. This may NOT be the case with CRT-based displays although that would depend on the quality of the chip that does the scaling in the TV...
Many of the recent and upcoming upscaling DVI-output DVD players do not upscale on the component outputs because component outputs do not have HDCP - this is a concession to those wise folks in Hollywood.

You are probably going to be in the market for a DVI switch if you go this route...