I can't speak to what is better but I can tell you that I am thrilled with my DLP. The fact that I can pick up and move my 42" Widescreen all by myself is a great thing. It seems that total screen size is a factor as well as the 'viewing standard tv on a widescreen' issue. For me personally I've never seen the rainbow thing on my machine. I watch normal tv in the normal resolution with black bars down both sides of the screen. That doesn't bother me, but I wouldn't be surprised if it bugged some people.
just my 2 cents