Although 1080p front projectors are still $2K and above, you can get 720p projectors for a song--around $550. Even a 720p projector is noticeably higher-rez picture than a 480p. It has double the pixels. I have a 720p 55" rear projector TV and I hardly EVER rent a std-def DVD because the Blu-rays look so much better on it. Seems it would be even more noticeable on a bigger projection.
I would recommend getting a 720p front projector to replace your current one, an inexpensive Blu-ray player, and add "Blu-ray" to your profile at Netflix for an extra $1/month. When the prices drop again, move up to a 1080p projector to see the rest of what Blu-ray has to offer.
This type of setup would also give you a better picture from std-def DVDs. In my experience, upconverted DVDs over HDMI to a higher-rez display (e.g., 720p) is the best way to view them.
I would recommend getting a 720p front projector to replace your current one, an inexpensive Blu-ray player, and add "Blu-ray" to your profile at Netflix for an extra $1/month. When the prices drop again, move up to a 1080p projector to see the rest of what Blu-ray has to offer.
This type of setup would also give you a better picture from std-def DVDs. In my experience, upconverted DVDs over HDMI to a higher-rez display (e.g., 720p) is the best way to view them.