You have no light control. I would start to consider the AE100, those screenshots I have seen look surpringsly good. I have not seen it in person. Maybe you are lucky and have a avs member living nearby who can show it to you.
I have a CRT myself and have a dark cave. It looks to me right now every means of projection is pretty good, but not perfect.
CRTs are dark, LCD have screendoor, DLP has rainbow.
The solution to those projections methods.
CRT you have a dark room, LCD you defocus, DLP you can not really do much, correct me if I am wrong on this.
I have seen the plus piano. Somewhat over your price range. The piano looks damn good, if the AE100 is near, that it almost a sensation. LCD has no rainbow which the piano has.
You should use a HTPC for good scaling. I don't know the internal scaler on the AE100, but I doubt it is so good as the piano.