I have the Panny700 with a 106" Da-Lite High Power. For me, the combo works quite well. Matter of personal taste though. If you happen to be the type who obsesses over the absolute darkest black level, then the HP is probably not for you.
As for me, here are the reasons why I like the HP with the Panny 700. Although a calibrated 700 supposedly puts out more light than a calibrated HS51 for example, after calibration this thing is by no means a light cannon.
Things I've noticed with the 700 + HP combo: As Tryg posted in his thread comparing high gain screens with matte white and high contrast ones, I get better shadow detail with the HP. In other words, you see things in darker areas with the HP that you might have missed with a high contrast screen for example.
Another consideration is that although manufacturers call those gray screens 'high contrast', they don't really increase CR. All they really do is lower the black floor so the previous lowest black level is now a little lower since it's projected on a darker screen. Correspondingly, the brightest levels are lowered the same amount for a zero increase in contrast ratio. For this simple reason, I don't really mind the lighter 'black' since everything is correspondingly brighter and your eyes tend to adjust to that. Besides, PJs like the 700 and HS51 have greater CR and darker blacks than the previous gen's Panny 500, Z2, HS20 and even with a HP screen, the blacks look better than one of those with a matt white screen or even a 'high contrast'.
The brighter image also has more punch and I like the color rendition better. Although our eyes and brain adapt to something, after getting used to the punchy presentation from the HP, a high contrast screen tends to look dull in comparison. Although the gray is not supposed to affect the color rendition except for making it a little darker, you would lose some of the vibrance if you went from a HP to a 'high contrast' screen. Careful calibration of the PJ's image is necessary though, especially to make sure that the white point isn't being clipped and highlights are not blown out since this is easier to do on the HP screen but all in all, with the Panny700, I wouldn't go back to a matte white. Although I haven't owned one, I have viewed the Stewart Firehawk in my local dealer's showrooms where they have 3 projectors set up in different rooms. I might try a Firehawk just to A/B it with my HP for comparison IF I could get it at a 66% discount, but right now, I'm very pleased with the 700 + HP and I'm quite happily sticking with it.
P.S. Just for a subjective comparison of older gen LCD + Firehawk vs. newer gen LCD + HP. I find that my 700 has better contrast and deeper blacks on my HP than the store's HS20 demo has with the Firehawk, and of course, the picture is much punchier, brighter and just more vibrant. Huge difference in immersive film experience especially if you like flashy things like watching 'The Fifth Element' Superbit replete with bright colorful images, lots of explosions and a nice plaster cracking DTS soundtrack.