With the recent introduction of 1080p FPs this is producing a trickle-down effect for the cost of 720p projectors, both current and new models. This is very good news for the consumer.
With the current state of HD (1080i/720p), 720p projectors are very capable of producing a great HD image as long as your environment can support what is needed for good FP (control of ambient light, room dimensions, etc. etc.) 720p works well with HD broadcasts and will be more than adequate in reproducing the other current HD sources. I'm constantly amazed at how quickly the prices have dropped (I really shouldn't be given the nature of technological progress and performance). My first HD FP (the ground-breaking SONY VW10HT which offered a 720p LCD image) cost me $5800 in 1999 - and that was a great price at the time. My current Runco CL-710 (720p DLP) listed for almost $12K and I still love the picture. I'm blown away that comparable projectors are now available at under $1K! (Luckily, I won the Runco on an HT cruise so it doesn't sting.)
The bottom line is that BIG PICTURE affordable HD is clearly within reach of almost all HT enthusiasts. As long as you don't require the absolutely latest technology (1080p) for your FP needs this has definitely become a buyer's market. If you've seen 720p FP and if your needs fit the profile then you know what I'm talking about. While 720p isn't the "latest/greatest" it certainly is a giant step up from SD and should serve people well for many years.
(Of course, at CEDIA I'll be looking to see what's on the 1080p FP horizon. But that's just me - a bleeding edger.)