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HD-DVD and Blue Ray projection to change theatrical exhibition game?

Over the past year we've exhaustively discussed digital distrubution in the theatre. The crux of the issue is that decent HD projection was expensive and the specialty theatres didn't want to pay for it. If you finished your picture on 1080p HD or even 2k, you were stuck with a crappy DV projection if you couldn't afford the $35k-$50k to get a 35mm print.

Some festivals and specialty theatres have equipped themselves with HD or 2K projection, but on the whole, most venues only have DVCAM or Digibeta to project a digitally finished film.

This could change within the next year and change the game for indie exhibition. The reason? HD-DVD and Blu-Ray projection. Affordable HD projection will come to smaller cinemas within the next eighteen months, avoiding the need for 35mm prints and getting indie filmmakers even closer to the goal of achieving the 35mm look/feel of a studio film for a fraction of the cost. Final Cut Studio already supports HD-DVD authoring, all you need now for your theatrical release is a prosumer deck and projector! Even DVCAM projection has made great strides, a 1080p downconvert projected to a small theatre screen doesn't look half bad.

I am curious if anyone has updated news on these HD-DVD or Blu-Ray projectors. They will change the economic formula for indie theatrical releases.
 
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Although the affordable delivery format of of HD DVD or BluRay will help, the cost of true HD projectors are the major price concern for commercial theaters, often costing in the neighborhood or more of obtaining a 35mm projector. Prices are coming down but until you can buy a 1080p commercial projector (3000 or more lumens) for under $10k you won't see cinemas switching. Not to mention that first run theaters will first need distributors to supply an HD deliverable. This will mean added expense for a distributor, certainly in the near term as the cost of an HD master transfer of a 35mm film is still considerable.
 
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