I get into it because I spend a disproportionate amount of my income on such things compared to most people. When a DLP projector goes from $8K to $3K, it's a big deal to me because I just saved a ton of money, but if you wouldn't even consider spending $3K, who cares?
I was referring to flat panels when I said "LCD". Plasmas are going to be a better deal for a while though. You can get a 37" widescreen plasma for about $1500 today. Now that's an EDTV model (848x480, perfect for 480p DVD playback), but even those are nice. I had a 42" EDTV plasma for a while, and DVDs looked stunning. And, despite the lower resolution, HD looked really awesome as well.
Imagine what they'll cost in two years.