It is true tha 'all other things being equal' that a native HD transfer will outperform a DVD transfer, but all other things are rarely equal.
For instance the T2 extreme DVD (and I mean the DVD part of it, not the HD WMV version) looks better at DVD resolution that the HDTV D-Theater release of T2 because it came from a better master.
The source film print and the skill of the telecine operator and the quality of their equipment is of first importance, a well done DVD can look better than a poorly done HD transfer.
Some other cheap scaling DVD players to check out are the momitsu V880N, the Skyworth (later models only - the earlier ones were awful) which can do almost any resolution up to 1080i, and the neuneo player (which upscales to 1080P), but none of them , including the Bravo can hold a candle to a terranex, or even a lowly Iscan HD running via SDI from the player. (Although you won't be getting optimum results with that projector, especially on the space scenes due to its poor black levels.) The newer 1080P panel projectors do a great job, or of course the CRTs like the cine9 and G90 still look magnificient.
At any rate, if DVDs look awful on anyones hidef display device, the problem is with the scaling, so go get a decent scaler.
It will be interesting to see if there is a blu-ray release of the SW films now that Fox has sided with that camp.