How many people do you know that have a projector in their mix? That probably represents a few percent of the buying public, at best, and those folks are usually on the higher end of the price spectrum...
Out of five people I know who have home theaters, four have front projectors.
Actually, a very capable 1080p projector can be purchased for under $1000 now, so you can buy a projector for less than a lot of people pay for LCD TVs. You could supplement that Dynex TV with a very nice front projector and it would suit your system quite well.
As far as "Tough Times Ahead" and trusting Outlaw is concerned, I suspect that Peter understands this marketplace much better than any of us and can take care of himself and his company very capably.